Experts from the analysis firm Terfis have recently predicted sales in the third quarter for Nvidia's graphics processing units, otherwise known as GPUs since 2018. According to a report published by the Forbes newspaper on November 13, Trefis noted that while Nvidia's GPU sales increased in the last quarter of 2018, cryptocurrency activities continue to slide on its longer bearish trend from this summer.
Reportedly, the US GPU manufacturer Nvidia should release its full layout of the third quarter financial results on November 15, and Trefis experts also predicted that the company has seen earnings growth of over 20% on a yearly.
So, what is it that is driving this increase in annual revenues? It is above all the continuous success of its line of gaming GPUs, which are enjoying an increase in the level of demand thanks to the newly implemented Max-Q technology; along with the Datacenter, which is also experiencing a new wave of increased demand for its Volta architecture, analysts said.
These same experts also make the prediction. that the growths of the Tegra Processors and GPU segments have increased in the "high-teens". The revenues of Tegra Processor, according to reports, will grow to $ 490 million Q3. This, according to experts, is driven by the Automotive and System on a Chip (SOC) modules used for the Nintendo Switch gaming console.
Despite the overall positive outlook that currently exists for GPU revenues, the report continues to record the general decline in sales experienced by Nvidia's cryptographic activities, together with the overall impact of the recent US tax burden on some Chinese goods, which were introduced in the early stages of this year.
Overall, analysts expect consolidated revenues to reach just under $ 3.1 billion from the third quarter of this year. Of this, 84 percent of this can be directly attributed to the game's GPUs, while Tegra's processors should recover the rest of the revenue.
The report continues to explain,
"We have foreseen 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 for multiple earnings of 35 times to arrive at our estimated price of $ 248 for Nvidia. This implies a premium of over 30 percent at the current market price. "
Other news had already reported on this news. Highlighting that the share price of Nvidia has depreciated by more than 5% in the extended session. This occurred following the announcement of the financial estimates of the company Q3. The company's revenue was impacted by a decrease in the use of crypto as digital currency markets plummeted at the start of this year.
Subsequently, Nvidia reported that the sales of mining encryption were significantly lower than previously estimated in the second quarter, adding that it does not foresee any significant sales related to the blockchain for the rest of 2018.
Meanwhile, Trefis experts outlined a sharp decline of over 20 percent in Nvidia's share price during the previous month. Reportedly, the weak third-quarter data of some technology stocks and the markets reacted following tariffs.