StockBeat - Nvidia Soars Ahead of Earnings After Trump Delays Tariffs

StockBeat - Nvidia Soars Ahead of Earnings After Trump Delays Tariffs

StockBeat - Nvidia Soars Ahead of Earnings After Trump Delays Tariffs
Stock Market
Tuesday, August 13, 2019 - 17:15

Investing.com - Nvidia rallied on Tuesday thanks to a timely boost ahead of its quarterly report due later this week after the U.S. delayed some tariffs on Chinese goods, lifting investor sentiment on chipmakers.

The United States Trade Representative office said Tuesday that new tariffs on certain consumer items, which were set to go into effect on Sept. 1, would be delayed until Dec. 15, citing health and security factors.

Semiconductor-related goods, including cellphones, laptops and video-game consoles, are also set to be spared, easing fears that U.S. chipmakers such as Nvidia, for whom China is a large source of gaming revenue growth, were set to come under further pressure.

Nvidia (NASDAQ:NVDA) rose more than 3% amid a sea of green across semis with Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) also on track to end the day more than 2% higher.

The more somber news on trade comes just days ahead of Nvidia’s fiscal second-quarter earnings due Thursday after the close.

Analysts are optimistic that the company’s gaming sector, which accounts for the bulk of revenue growth, can meet Wall Street expectations. There are doubts, however, over the performance of its data center segment.

“Fiscal second-quarter gaming revenues, as well as NVDA's fiscal third-quarter forecast, are likely to meet or exceed estimates in our view in light of modest expectations,” Wedbush said in a note to clients. But data center revenues are more of a question mark, the brokerage added.

Nvidia is up about 17% for the year and has a consensus price target from Investing.com of $182.39, suggesting more than 16% of upside from its current price of $156.35.

from its current price of $156.35.

© Reuters.
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