Scalper1 News
Wall Street expects Tesla Motors ( TSLA ) partner Nvidia ( NVDA ) to post double-digit sales growth for just the second time in the past six quarters, as well as its biggest earnings growth in five quarters, when the company reports Q1 earnings Thursday. Nvidia stock has zoomed since Feb. 12, up 40% since Facebook ( FB )-owned Oculus Rift released its first virtual-reality headset. Nvidia and rival Advanced Micro Devices ( AMD ) are the recommended graphics-chip providers for laptops that work with the headsets. Nvidia stock rose a fraction Wednesday to 36.06 ahead of its Q1 report due after the close. For Q1, the consensus of 26 analysts polled by Thomson Reuters expect Nvidia to report $1.26 billion in sales and 32 cents earnings per share ex items, up a respective 10% and 33% vs. the year-earlier quarter. Sales would decelerate from 12% growth in Q4 but top the four previous quarters. Earnings last climbed above the 30%-growth mark in March 2015. Nvidia’s Q1 report comes a week after the chipmaker and Samsung called for a truce in their two-year licensing battle. It also follows Tesla CEO Elon Musk’s call for the automaker to manufacturer 1 million electric vehicles by 2020 — a boon to Nvidia, whose chips power digital instrument and infotainment displays in the Model S. Tesla’s yet-to-be-released Model 3 was marked by “overwhelming demand” when it began taking preorders in April, Musk and Tesla CFO Jason Wheeler told shareholders this month. Scalper1 News
Scalper1 News