Nvidia stock price shot up in after hours trading on August 15, 2019, after a buy order came in off the dark pool valued at $17 million.
Nvidia reported Q2 revenue of $2.58 billion and EPS of $1.24, above consensus analysts estimates of $2.55 billion and $1.15. It also guided for fiscal third quarter revenue of $2.9 billion, plus or minus 2%, which compares with a consensus estimate of $2.98 billion.
The real exciting story surrounding Nvidia stock though is the Mellanox purchase which, with regulatory approval, should close by the end of 2019. Mellanox will give Nvidia access to the data center market.
On the earnings call, Nvidia the CEO said Super GeForce RTX is off to a ‘super start’ on adoption of ray tracing by the most popular games on the market.
I think Nvidia stock could also explode higher on the recently unveiled 3 new GPUs in July, which deliver a performance boost of up to 26% from Turing processors.
The dark pool buy order makes a lot of sense, especially when you consider the synergy that the Mellanox acquisition will bring to Nvidia.
Looking at the options flow, bullish calls dominated market action today. In fact, Nvidia stock was the #6 ranked stock in terms of top calls. There were 20 bullish calls worth $2.41 million on August 15, 2019.
Disclosure: I do not hold any position in Nvidia stock.