Nvidia's Q2 2018 Earnings Report: A Sparkling Quarter with Strong Revenue Growth and Guidance

Gross margin rose an impressive 510 basis points to a sparkling 64.7%, marking a significant milestone for the company. Non-GAAP EPS of $2.05 witnessed a remarkable year-over-year growth of 141%, far exceeding consensus estimates of $1.41.

On the earnings front, Nvidia crushed it again, surpassing expectations with revenue of $3.21 billion, representing a staggering 66% year-over-year growth rate. This performance is all the more impressive when considering that Q1 sales have grown an astonishing 150% over the past two years.

The company's financial report has been hailed as another spectacular quarter for Nvidia, with investors eagerly awaiting the opportunity to capitalize on any post-earnings weakness. Despite the stock trading at an all-time high leading up to the announcement, the bull case for NVDA still appears intact.

Guidance for fiscal Q2 (ending July) also exceeded expectations, providing further evidence of the company's continued momentum. Notably, Nvidia's stock price has declined by around 3% in after-hours trading as of this writing, leaving many wondering what could have driven this unexpected move.

Beyond simply exceeding high expectations, it is challenging to identify a clear driver behind the negative reaction to the earnings report. This lack of clarity notwithstanding, Nvidia's track record of consistently beating analyst estimates has undoubtedly boosted investor confidence, with the stock having risen an impressive 1,130% over the past three years.

For the eleventh consecutive quarter, Nvidia Corporation (NASDAQ: NVDA) has handily beaten analyst estimates, cementing its reputation as a reliable and resilient performer in the tech industry. As the company continues to drive growth and exceed expectations, it is likely that investor enthusiasm will remain strong, making now an opportune time for those considering investing in NVDA to take advantage of any potential post-earnings weakness.

Nvda earnings report q2 2018