First, some investors may have been hoping for a more upbeat outlook in spite of the tough comps. I suspect that NVDA's stock is dropping for two primary reasons. Q1FY23 Slides Why Is NVDA Stock Dropping? That represents a huge deceleration from the 46% growth of the latest quarter, but should not be too surprising considering that NVDA is passing over tough comparables.

In the next quarter, NVDA expects around $8.1 billion of revenue, representing 24.4% year over year growth. The company ended the quarter with $20.3 billion of cash versus $11 billion in debt for a net cash position of $9.3 billion. NVDA repurchased $2 billion of stock and paid out $100 million of dividends in the quarter. Data center revenues grew 83% to $3.75 billion. Yet data center revenues have finally eclipsed gaming revenues to become its biggest business line. Gaming revenues grew by 31% year over year. Most investors may know NVDA for its gaming division as that has historically been its profit driver. Excluding that one-time expense, non-GAAP EPS grew by 49%. Net income declined on a GAAP basis by 15% due to $1.35 billion in acquisition termination costs related to its failed acquisition of Arm. In the latest quarter, NVDA showed strong 46% revenue growth. After a 37% decline since then, NVDA is primed for a rally. I last covered the stock in March where I was neutral on the stock due to the fact that its valuation was 'only' reasonable while the rest of the tech sector had already undergone monumental multiple compression.

NVDA is now trading below $150 per share, a far way from its $346 all-time high reached in late 2021. Valuation is no longer an issue here - I rate the stock an outright buy for long term investors. This is all while the company is profitable with a net cash balance sheet. NVDA stands to benefit from the ongoing digital transformation and further from the move towards more advanced technologies. Nvidia ( NASDAQ: NVDA) has finally dropped to clearly buyable levels in spite of having one of the more attractive growth stories in the market today.

Nvda stock price tomorrow