NVIDIA Stocks Explode on Earnings and AI Driverless Car Deal

NVIDIA Corporation [NASDAQ:NVDA], a US$72 billion company, just ran up more than 17% in one day!

Who said you can’t make big returns on billion-dollar behemoths?

All time NVIDIA Share Price High

The stock hit an all-time high of $121.73 yesterday, after the company reported strong quarterly earnings, with diluted earnings per share of $0.79 along with a 48% hike in revenues to US$1.94 billion.

The revolutionary tech giant also announced a deal with carmaker Toyota Motor Corp [ASX:7203]. Both companies will collaborate to deliver artificial intelligence (AI) hardware and software technologies that will enhance driverless cars in the next few years.

While NVIDIA works with other companies on AI and autonomous vehicles, their deal with Toyota is significant, as they are one of the largest automakers in the world. Toyota will be using NVIDIA’s DRIVE PX computer chip for AI cars.

What this basically means is more future sales for NVIDIA. Because of this, analysts are hiking their target prices on NVIDIA significantly.

As reported by Market Watch:

On Wednesday, increases to Nvidia’s target price come from UBS, to $135 from $132, Stifel Nicolaus, to $93 from $90; J.P. Morgan, to $122 from $116; SunTrust Robinson Humphrey, to $124 form $116; Pacific Crest, to $99 from $90; and RBC Capital, to $138 from $130.

You get the idea. NVIDIA has the potential to be even bigger.

But is it too late to get in now on NVIDIA stocks?

It might be wise to wait until the stock dips momentarily. As usual, when good news is announced, investors overreact, thinking the news is far better than it actually is.

But if you’re thinking about investing in your first tech stock, NVIDIA might be one of the best tech companies to invest in. They have cutting-edge technology. They’re going to be involved in multiple industry projects worth billions. And the company has contracts with major players in AI and the driverless-vehicle field.

Sounds like a good long-term investment to me.


Härje Ronngard,

Junior Analyst, Markets & Money

PS: While NVIDA climbs higher, so too does the ASX 200. The market isn’t coming down from 5,828 points. But if earnings don’t deliver for financial year 2017, markets could easily fall.

That’s why you need to read the Markets & Money report, ‘Five Fatal Stocks you Must Sell Now’.

It might be better to crystallise your profits now, than to risk your returns on future earnings. Find out of one of the five fatal stocks is in your portfolio by clicking here.


Harje Ronngard is a Junior Analyst at Markets and Money. With an academic background in finance and investments, Harje knows how simple, yet difficult investing can be. He has worked with a range of assets classes, from futures to equities. But he’s found his niche in equity valuation. It’s not good enough to be right on average when it comes to investing. The market is volatile and it only takes one bad day to ruin your portfolio. You don’t want to end up like the six foot man that drowned in the river that was five foot deep on average. It’s why Harje is constantly reminding investors of their downside risk here at Markets and Money. He does so by simply asking just two questions.  What is it worth? And how much does it cost? These two questions alone open up a world of investment opportunities which Harje shares with Markets and Money readers. Right now Harje is focused on managing research and investments over at the Legacy Portfolio. An investment publication designed to significantly grow investor’s wealth over time with deeply undervalued businesses. Harje also contributes his insights in Total Income, headed by income specialist Matt Hibbard. Harje loves cash-rich businesses, so he feels right at home amongst Matt’s high yielding income plays.

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