Ok, I understand most of that. But still ambiguous if you believe Nvda is going to recover or not. They're not making any money off the crypto mining anymore cause they are "above" that business. They did well with their core business so far. The only sector that is still unclear is their gaming sector. People who just buy their cards for gaming. That's been on a decline lately but if you look a the bigger picture, customer spending has decreased the last year. Nvda isn't the only company that has been raising prices to make up for short sales. Apple is suffering and lately I've heard a PG has been doing the same since their unit sales are declining. Looking at the bigger picture, what the hell are consumer's spending their money on if a company like PG is reported weak sales units? Unemployment rate is low... So they spending their money on something... Perhaps everyone is investing.
Nvidia Corp. is set to release its first-quarter results at the tail end of a reporting season that has shown few signs of a recovery in chip demand. That’s making Wall Street nervous. Analysts’ chief concern is Nvidia’s data center business. Sales in that segment contracted for the first time in three years in the fourth quarter, which the company attributed to a pause in spending by hyperscale cloud companies. Intel Corp., the world’s second-largest chipmaker, put that characterization in doubt last month when executives projected its 2019 data center sales would shrink for the first time in a decade. “Data center may be the biggest risk,” in Thursday’s earnings report, Christopher Rolland, a Susquehanna analyst, wrote in a research note. Data center challenges and lower revenue in the desktop PC gaming market may make it difficult for the Santa Clara, California-based company to meet its fiscal 2020 revenue forecast of flat to slightly down, according to Stifel analyst Kevin Cassidy. “We are cautious on Nvidia shares in front of its earnings report,” wrote Cassidy, who has the equivalent of a neutral rating on the stock. “We believe the company will be challenged to meet its full year guidance for revenue.” Just the Numbers 1Q revenue estimate $2.20 billion (range $2.08 billion to $2.24 billion); forecast $2.2 billion 1Q adjusted EPS estimate 81c (range 72c to 87c) 1Q adjusted gross margin estimate 59.0%; forecast 59.0% Fiscal 2020 revenue estimate down 5%; forecast flat to slightly down Data 25 buys, 11 holds, 4 sells Avg PT $184.44 (14.9% upside from current price) Implied 1-day share move following earnings: 9.7% Shares rose after 7 of prior 12 earnings announcements Adjusted EPS beat estimates in 11 of past 12 quarters Quarter dividend BDVD est. 16c per share, year ago reported 15c; next declaration date May 16, 2019 Timing Earnings release expected 4:20pm (New York time) May 16 Conference call website