Buy This Top Tech Stock Before The Closing Bell

The projections are looking great for tonight’s earnings report from a well-known graphics card producer. Analysts are calling for 39% annual sales growth and a whopping 80% earnings growth. On top of this, the company has posted double-digit earnings surprises for the past several quarters running. Last quarter, this high flier trounced analysts’ earnings estimates by 34%. Which company am I referring to?

I’m talking about NVIDIA Inc. (NVDA), which will release its fiscal second-quarter results around 4:20 PM EST. NVIDIA Corp. is a leading computer graphics company, making graphic processing units (GPUs) for consumers and businesses. From video games to professional visualization, datacenter and automotive applications, NVIDIA’s graphics cards enhance the processing capability of its users’ computers.

The company has been in the computer graphics business for more than two decades—it invented the GPU in 1999—so it is a well-established player. To date, NVIDIA owns 7,300 patents relating to computer graphics, the largest portfolio of its kind.

While NVDA stock got its start as a graphics card company that catered to video game enthusiasts, it turns out that the GPU has a wide range of powerful applications. Graphics cards can be used to aid computers in applications like financial modeling, oil and gas exploration, virtual reality and even in self-driving cars. Lately, NVIDIA’s GPUs have been in hot demand due to their use in cryptocurrency mining.

This has driven strong top- and bottom-line growth for the past several quarters. And given the strong forecasts for tonight’s report, NVIDIA is expected to keep up the momentum.

My expectation is that this will be a headline-making earnings report, so I consider NVDA an A-rated Strong Buy. I currently recommend NVDA in my Growth Investor newsletter—we’re sitting on a massive 480% gain in this position.

But NVDA still has room left to run. It’s trading at a reasonable valuation, and it still has excellent forecasted sales and earnings. So I recommend that you add NVDA before tonight’s earnings report.


signed: Louis Navellier

Louis Navellier

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