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Shares of Tesla Motors ( TSLA ) partner Nvidia ( NVDA ) rocketed in after-hours trading Wednesday, after the graphics processing unit-maker toppled Wall Street’s fiscal Q4 and 2016 views, and guided to fiscal Q1 sales vastly above consensus views. Nvidia stock was up nearly 8% in extended trading Wednesday, after releasing its financial results, after rising 2.5% in the regular session, to 27.66. Nvidia stock hit an eight-year high near 34 at the end of 2015, before the stock market’s rough start to 2016. For its fiscal Q4 Jan. 31, Nvidia reported a record $1.4 billion in sales, as well as 35 cents earnings per share, up 12% and flat, respectively, vs. the year-earlier quarter. Both metrics topped Wall Street expectations for $1.31 billion and 32 cents. Three months ago, Nvidia guided to $1.3 billion in sales, plus or minus 2%. Nvidia ended fiscal 2016 with $5.01 billion in sales and $1.08 EPS, up 7% and 4%, and topping the consensus model of 29 analysts polled by Thomson Reuters for $4.92 billion and $1.05. Current-quarter guidance shot well above the consensus. For fiscal Q1, Nvidia sees $1.26 billion in sales, plus or minus 2%. That would be up 9.5% year over year. Wall Street had modeled $1.23 billion. Analysts also expect 28 cents EPS, which would be up 17% vs. the year-earlier quarter. Nvidia doesn’t provide an EPS outlook. Nvidia CEO Jen-Hsun Huang, in the company’s earnings release, credited investments in PC gaming, virtual reality, deep learning and autonomous vehicles for the Q4 beat. He also expects Nvidia to delve further into the nascent Internet of Things market. “Deep learning is a new computing model that teaches computers to find patterns and make predictions, extracting powerful insights from massive quantities of data,” he said in the release. “We are working with thousands of companies that are applying the power of deep learning in fields ranking from life sciences and financial services to the Internet of Things.” MKM analyst Ian Ing said Tuesday he expects Nvidia to benefit from Facebook ( FB )-owned Oculus Rift’s pledge to release more than 100 VR games by the year’s end. Oculus recommends graphics processing units (GPUs) from Nvidia or rival Advanced Micro Devices ( AMD ). Scalper1 News
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