NVIDIA (NVDA 237.68, +20.16) has spiked 9.3% in pre-market after delivering another solid quarterly report. The early gain puts the stock within 5.0% of its record high that was notched on January 31.
The GPU manufacturer reported above-consensus fourth quarter earnings of $1.72 per share on a 34.0% year-over-year jump in revenue to $2.91 billion, which also exceeded expectations.
NVIDIA's solid report was coupled with upbeat guidance for the first quarter. The company expects to report first quarter earnings between $1.59 per share and $1.72 per share on revenue between $2.84 billion and $2.96 billion, which is ahead of market expectations.
While the hot chipmaker has continued firing on all cylinders, participants should be well aware that an extended stretch of outperformance leaves the stock priced to perfection. This means that any future hiccup in the company's performance could lead to a significant pullback in the stock, which has soared more than 600% from $33 at the end of 2015.
Gross margin increased 190 basis points year-over-year to 61.9% and rose 240 basis points on a sequential basis. Operating income jumped 63.0% year-over-year to $3.62 billion.
The company recorded revenue growth across all five of its segments. Datacenter revenue surged 104.7% to $606 million. The company's largest segment—Gaming—recorded revenue growth of 29.0% to $1.74 billion. Professional Visualization revenue increased 12.9% to $254 million. OEM & IP revenue increased 2.3% to $180 million while Auto revenue grew 3.1% to $132 million.