Nvidia (NASDAQ: NVDA), one of the premier manufacturers of computer hardware, is rising again in the face of expectations of a positive earnings report. Even though total revenue at the large chip manufacturer has declined from a peak of $12 billion in 2018 to roughly $10 billion this year, Nvidia's outlook is still positive looking toward the future. This decline in revenue is reflected in a decline in the share price, with a peak of $292 a share last year declining to roughly $208 a share after recent trading. Still, analysts have a positive outlook on this stock, which has multiplied in value in recent years from a boom in the number of devices requiring advanced chips. Several analysts, including those from UBS and Deutsche Bank, have upgraded their expectations for this stock, with price targets reaching as high as $240 for the near future.
Nvidia is looking to set the standard in the growing video game industry. It has developed a new ray tracing technology in its cards that it hopes becomes a mainstay for gamers looking for better graphics. In addition, it is expected that they will soon announce a rollout of a brand new style of 7 nm data center chips, which will massively improve processing power in a critical piece of technology infrastructure. For instance, Alphabet (NASDAQ: GOOGL) is trying to integrate these 7 nm chips into their data centers, which should offer an increase in processing capabilities for one of the world's most important data companies. This is important to the health of Nvidia's stock, as the data center business is one of its largest money makers and has posted significant year over year declines in the last two quarters.
In addition, the uncertain future of the cryptocurrency space has Nvidia considering other options to continue its growth. Bitcoin has plateaued and without a steady price increase in cryptocurrencies, the crypto mining community has no reason to purchase new GPUs. This has been a significant driver of Nvidia's growth in recent years, but the chip maker still has other areas in which it can drive sales. For instance, the use of Nvidia chips in the Nintendo (OTC: NTDOY) Switch is another buoyant force. Nvidia reported after market close earnings Thursday, with the stock reporting $1.45 in earnings per share and $3 billion in sales. This quarter beat both earnings and revenue exceptions, growing the company's profit margin to the widest point since the quarter ending April 2018.