On Thursday, the stock price of Nvidia is projected to rally amid strong fourth-quarter 2022 data. Besides, it backed up Microsoft for its Activision Blizzard deal.
The software company ended Wednesday’s session by gaining 0.48% to $207.54 per share. Likewise, it is expected to rise further by 8.89% to $225.98 apiece in the upcoming session.
During the earnings call, executives said Nvidia’s EPS rose to $0.88. It is higher than the market forecast of $0.81 and above the previous record of $0.58.
Also, the sales revenue of Nvidia increased to $6.05 billion, surpassing the analysts’ projections of $6.01 billion. Besides, it exceeded the precursory reading of $5.93 billion in Q3.
Moreover, the entity’s gaming division gained $1.83 billion, topping the $1.60 billion Wall Street estimates.
Furthermore, the professional visualization of Nvidia grew to $226.00 million compared to analysts’ $195.00 million forecasts.
In addition, the auto and robotics section earned $294.00 million versus the expected data of $267.00 million.
Meanwhile, Nvidia has increasingly been viewed as one of the chip stocks best positioned to defy an economic downturn.
For Q3 2022, the company expects its revenue to increase to $6.50 billion. It is higher than the market consensus of $6.33 billion.
Microsoft Collaborated with Nvidia
Earlier this week, Microsoft announced a 10-year deal to bring its Xbox games to the GeForce Now cloud of Nvidia.
In return, the latter needs to back the former against its battle to acquire Activision Blizzard for $69.00 billion.
The tech giant said that its Xbox integration with the cloud gaming subscription service of Nvidia would only take place if it won the case.
Phil Eisler, the chip maker’s vice president and general manager supported this decision. He said that the acquisition should take place first before Xbox would be integrated into GeForce.
Microsoft has been fighting to acquire Activision Blizzard since 2022. Yet, the completion keeps getting delayed due to the opposition of regulators and its rivals, such as Sony.