NVIDIA Stock: Buy or Sell After Its 2023 Earnings?

After a stellar run in 2022, NVIDIA (NASDAQ: NVDA) stock has struggled in 2023. The stock is down over 30% year-to-date, as investors worry about the company's slowing growth and the impact of the cryptocurrency crash.

However, NVIDIA remains a leader in the semiconductor industry, and its long-term growth prospects are still intact. The company is a major player in the artificial intelligence (AI) and data center markets, and it is well-positioned to benefit from the continued growth of these markets.

In this article, we will take a closer look at NVIDIA's recent earnings report and discuss the company's prospects for the future. We will also provide our recommendation on whether to buy or sell NVIDIA stock.

NVIDIA's Recent Earnings Report

NVIDIA reported its fourth-quarter and full-year 2023 earnings on February 22, 2023. The company reported revenue of $6.05 billion for the quarter, up 21% year-over-year. However, revenue declined 12% sequentially, as the company's gaming business slowed down.

Net income for the quarter was $1.32 billion, down 53% year-over-year. However, net income increased 14% sequentially, as the company's expenses declined.

For the full year, NVIDIA reported revenue of $26.91 billion, up 26% year-over-year. Net income for the year was $4.35 billion, up 18% year-over-year.

NVIDIA's Prospects for the Future

NVIDIA's long-term growth prospects are still intact. The company is a leader in the AI and data center markets, and these markets are expected to continue to grow rapidly in the coming years.

According to IDC, the AI market is expected to grow from $133 billion in 2022 to $387 billion by 2026. The data center market is also expected to grow rapidly, from $206 billion in 2022 to $333 billion by 2026.

NVIDIA is well-positioned to benefit from the growth of these markets. The company has a strong product portfolio and a large customer base. NVIDIA is also investing heavily in research and development, which will help it to maintain its leadership position.

Should You Buy or Sell NVIDIA Stock?

NVIDIA stock is currently trading at around $170 per share. The stock is down over 30% year-to-date, but it is still trading above its pre-pandemic levels.

We believe that NVIDIA stock is a buy at current levels. The company's long-term growth prospects are still intact, and the stock is trading at a reasonable valuation.

Here are some of the reasons why we are bullish on NVIDIA stock:

• The company is a leader in the AI and data center markets, which are expected to continue to grow rapidly in the coming years.
• NVIDIA has a strong product portfolio and a large customer base.
• The company is investing heavily in research and development, which will help it to maintain its leadership position.

Disclosure: I am long NVIDIA stock.

4 Key Tables

Here are 4 key tables that provide a snapshot of NVIDIA's recent performance and its prospects for the future: