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Pandemic or no, Nvidia Corporation (NASDAQ:NVDA) is making the most of every opportunity that comes its way. The company recently reported Q2 results and they are exceptional, to say the least. It has set the stage for the next quarter and as Nvidia continues to take giant strides in the market, NVDA stock is moving higher.

The stock went from $181 on July 16 to nearly $220 at this writing. The strong Q2 results and bullish opinions from analysts have made the stock a hot buy.

The stock is up 12% over the last month. I have always been bullish on NVDA stock and believe that investors should buy it at every chance. With that in mind, let’s take a look at the driving forces behind NVDA stock. 

Blowout Q2 Results

Nvidia recently announced the second quarter results that impressed investors. Revenue hit a record $6.5 billion, a 68% year-over-year increase. The revenue and earnings per share beat analysts’ estimates.

Digging deeper into the numbers, gaming revenue saw an 85% rise from last year and hit $3.06 billion. The data center saw a 35% increase to $2.37 billion. I have previously written about the gold standard set by Nvidia when it comes to gaming and it is only cashing in on it. The company is going to generate stellar revenue from gaming for the coming quarter as well. 

Cash and cash equivalents stood at $19.65 billion, which is up by $11 billion from the same quarter last year. Nvidia enjoys strong liquidity and has managed to pay dividends to the investors in addition to adding aggressively to the research and development expenses. 

For the next quarter, the company expects revenue of $6.8 billion and an adjusted gross profit margin of 67%. The company has set a foot in several industries and is firing on all cylinders. 

The impressive numbers are proof that Nvidia is the top growth company to invest in. It is generating strong revenues through different streams and is constantly growing. I believe the successful gaming business and growth of the data centers will take NVDA stock higher and investors should gear up for strong dividends this year as well. 

Wall Street Loves NVDA Stock

I am not the only one bullish on NVDA stock. Wall Street loves it too and the stock is soaring because of the buy recommendations from different analysts. Benchmark analyst Dave Williams has a buy rating for the stock with a price target of $230. The analyst believes that the company’s performance was solid and it has immense opportunity for growth. 

Rajvindra Gill, a Needham analyst, has a price target of $245 with a buy rating for the shares. The analyst thinks that gaming and automotive will continue to grow well. Mark Liacis, a Jefferies analyst, has a buy rating with a price target of $223. The analyst believes that the company’s growing revenue will lead to a higher upside. 

Further, Credit Suisse analyst John Pitzer has a price target of $225 and a buy rating based on the Q2 results. KeyBanc analyst John Vinh also has an overweight rating with a price target of $245.

The Bottom Line

Everything is going right for Nvidia and the stock is only soaring higher. If you love dividends, do not think twice before buying NVDA stock. The stock is not cheap at the current level but it is only going up. The sooner you buy, the higher you’ll earn in the long term. 

The strong fundamentals of the company prove its worth and showcase the strength of its products. With a solid balance sheet and impressive products for the gaming industry, Nvidia is here to stay. 

Buy NVDA stock and hold forever. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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