NVIDIA CORP. $19 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 541.9 million; Market cap: $10.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.8%; TSINetwork Rating: Average; www.nvidia.com) still gets most of its revenue from graphic chips for computer gaming, but is developing new chips for mobile devices and data centres.
In its fiscal 2015 second quarter, which ended July 27, 2014, Nvidia’s revenue rose 12.9%, to $1.1 billion from $977.2 million a year earlier. Sales of graphic chips (80% of the total) rose 2.3%. However, sales of its Tegra mobile chips jumped 200.0%, because automakers are now using them to power in-car entertainment systems.
Earnings gained 30.1%, to $173.4 million, or $0.30 a share. A year earlier, the company earned $133.3 million, or $0.23 a share. Nvidia spent a high 30.6% of its revenue on research in the latest quarter.
The stock trades at 18.6 times the company’s projected fiscal 2015 earnings of $1.02 a share. The $0.34 dividend yields 1.8%.
Nvidia is still a hold.