Expert Believes Nvidia Crypto GPU Sales On Massive Downtrend Ahead Of Q3 Report
Experts originating from the analytics firm Terfis have recently forecasted the quarter 3 sales for Nvidia's Graphics Processing Units, otherwise known as GPUs from 2018. According to a report made by the news outlet, Forbes on November 13th, Trefis noted that, while Nvidia's GPU sales went up over the latter quarter of 2018, its cryptocurrency related activities continue to slide on its longer downtrend from this summer.
The American based GPU manufacturer Nvidia is reportedly due to release its full layout of Q3 financial results on November 15th, and experts from Trefis have also predicted that the company has seen an earnings growth of over 20 percent on an annual basis.
So what is it that's driving this increase in annual revenues? It's mostly down to the ongoing success of its line of gaming GPUs, which are enjoying an increased level of demand thanks to the newly implemented Max-Q technology; along with the Datacenter, which is also experiencing a new wave of higher demand for its Volta architecture, according to analysts.
These same experts also make the forecast . that Tegra Processors and GPU segment growths have risen into “the high teens.” Tegra Processor revenues will also reportedly grow to $490 million Q3. This, experts believe, is led by both the Automotive and System on a Chip (SOC) modules used for the Nintendo Switch gaming console.
In spite of the overall positive outlook that currently exists for GPU revenues, the report continues on to record the general decline in sales experienced by Nvidia's crypto-related activities, along with the overall impact felt thanks to the recent imposition of US tariffs on some Chinese goods, which were introduced throughout the early stages of this year.
Overall, the analysts reportedly expect there to be consolidated revenues which will come in just a bit under $3.1 billion as of Q3 this year. Out of that, 84 percent of that can be attributed directly to the game GPUs, while Tegra Processors are expected to make up the rest of that revenue.
The report goes on to further explain,
“We forecast the [earnings per share] to be $1.63 in Q3, and $7.09 for the full year 2018. We use a [trailing twelve months] price to earnings multiple of 35 times to arrive at our price estimate of $248 for Nvidia. This implies a premium of over 30 percent to the current market price.”
Other news outlets had previously reported on this news as well. Highlighting that Nvidia's stock price depreciated more than five percent in the extended session. This occurred following the announcement of the company's Q3 financial estimates. The firm’s revenue was affected by a decrease in crypto mining as digital currency markets slumped earlier this year.
Nvidia subsequently went on to report that crypto mining sales were significantly lower than previously estimated in Q2, going on to add that it does not expect to make any further significant blockchain related sales for the rest of 2018.
Meanwhile, experts from Trefis have outlined a rough decline of over 20 percent in Nvidia's stock value during the previous month. This has reportedly followed the weak Q3 figures from some tech stocks and the markets subsequent reaction to the tariffs.