NVIDIA Corporation (NASDAQ:NVDA) Can Continue to Leverage AI Applications Opportunities, Investors Stand To Reap Rewards- Gigamon (NYSE:GIMO)

NVIDIA Corporation (NASDAQ:NVDA) [Trend Analysis] luring active investment momentum, shares an advance 0.37% to $108.78.  The leader in the graphics processing industry, NVIDIA (NASDAQ:NVDA) has been growing like gangbusters. Its performance over the last several years has been nothing short of stunning, and investors will rightly want to know if this growth can continue.

The Datacenter section was another important revenue driver, tripling to $296 million over the prior-year quarter. While this is currently still a small contributor to the top line, the company sees this as a important opportunity thanks to widespread use of its GPUs in artificial intelligence (AI) applications by big tech companies. Deep learning, a discipline of AI, has produced great strides in image recognition and voice processing, and NVIDIA sees adoption in additional industries contributing to future growth. As the result of these applications, NVIDIA anticipates increase in the total addressable market for its products.

NVIDIA continues to deliver standout results. The company sees this continuing as a result of strong demand in gaming, an expanding addressable market, and increasing adoption of its GPUs for use in AI applications. If NVIDIA can continue to leverage these opportunities, investors stand to reap the rewards.

The NVDA held a rough session during the week but was ready to get some critical analysis. The stock was assessed by a pool of analysts at WSJ and came out with some serious outcomes not to be avoided before making investment. The NVDA ratings chart showed that 13 gave HOLD ratings for the current month as not a single analyst opting for Overweight option for same period, whereas, 1 analyst out of pool gave UNDERWEIGHT rating. For stocks’ current month, 16 analysts opted for BUY ratings as compared to 2 opting for SELL in the same period. The stock price target chart showed average price target of 116.30 as compared to current price of 109.

Taking look on per share earnings estimates, its next year first quarter current estimate trend for EPS was for $0.62 and on annual basis FY 2016 estimate trends at current was for $2.78 as compared to one month ago of $2.75, and for next year per share earnings estimates have $3.33.

The total volume of 21.25 Million shares held in the session was surprisingly higher than its average volume of 18137.76 shares. EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 137.90%, and looking further price to next year’s EPS is 20.15%. While take a short look on price to sales ratio, that was 9.71 and price to earnings ratio of 56.83 attracting passive investors.

Shares of Gigamon Inc. (NYSE:GIMO) [Trend Analysis] runs in leading trade, it surging 1.65% to traded at $33.95. The firm has price volatility of 2.90% for a week and 6.57% for a month. Its beta stands at 1.58 times. Lets us look over what analysts have to say about performance of the GIMO. Starting with EPS for the final quarter of this year. EPS is usually the indicator of profitability for the company. According to WSJ analysis, the Q4 2016 current estimates trends were for $0.07 as compared to the next year Q1 current trend of $0.19. While on annual basis the current EPS estimates trend for FY 2017 came in for $1.36 as compared to three months ago $1.89.

The stock prices target chart showed high target of 45 kept by analysts at WSJ while the average price target was for 36.36 as compared to current price of 34.95. Somehow, the stock managed to gain BUY ratings by 6 analysts in current tenure as not a single analyst having overweight ratings, 4 recommend as HOLD. Overall, the consensus ratings were for Overweight by the pool of analysts.

Narrow down four to firm performance, its weekly performance was 4.30% and monthly performance was -25.14%. The stock price of GIMO is moving up from its 20 days moving average with 2.43% and isolated negatively from 50 days moving average with -17.99%.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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