Nvidia saw a weak quarter, as revenue decreased substantially on a quarter-over-quarter basis, while Q3 guidance came in lower than expected.

Takeaway – Despite Current Headwinds, NVDA Stock Has a Bright Future The average NVDA stock price target of $237.48 implies 38.1% upside potential. Nvidia has a Strong Buy consensus rating based on 24 Buys, seven Holds, and zero Sells assigned in the past three months. As a result, the stock’s sentiment is below the sector average, as demonstrated in the following image: What is a Good Price for NVDA Stock? However, in the last 30 days, 0.3% of those holding the stock decreased their positions. This suggests that investors of the company are very confident about its future. In addition, the average portfolio weighting allocated towards NVDA among those who do have a position is 7.92%. Out of the 557,672 portfolios tracked by TipRanks, 11.8% hold NVDA stock. The sentiment among TipRanks investors is currently negative. Investor Sentiment for NVDA Stock is Currently Negative The expected decline can once again be attributed to a slowdown in gaming. However, guidance for Q3 did not impress, as revenue is expected to come in at $5.9 billion versus the expected $6.9 billion. Therefore, the company’s operating income decreased from $2.4 billion in the comparable period to $499 million now. To make matters worse, the gross margin contracted from 64.8% to 43.5%, demonstrating significant operating deleverage. The fall in revenue was primarily due to its Gaming segment, which fell 33% year-over-year and 44% quarter-over-quarter.

This wasn’t much of a surprise today, as Nvidia had already warned that it would significantly miss its original guidance of $8.1 billion. However, the quarter-over-quarter comparison equates to a 19% decline. In addition, sales increased 3% year-over-year, with revenue hitting $6.7 billion compared to $6.5 billion. In the past nine quarters, the company has beaten estimates nine times.

Adjusted earnings per share came in at $0.51, which beat analysts’ consensus estimate of $0.50 per NVDA share. Shares of Nvidia ( NVDA) were down in the after-hours session after the company reported earnings for its second quarter of Fiscal Year 2023.

Why is nvda stock price dropping today