Fast Money

Monday - Friday, 5:00 - 6:00 PM ET
Fast Money

Nvidia Pullback to $14 Presents Opportunity: Terranova


“It’s just the guidance,” says trader Joe Terranova. “It’s not what the Street had hoped for.”

That was the Fast Money pro’s knee-jerk reaction to the pullback in Nvidia in extended trade, after the company said revenue in its fiscal first quarter would be between $900 million and $930 million compared with analysts' average forecast of $944.63 million.

Nvidia also guided for an April-quarter gross margin forecast of 49.5 percent, plus or minus 1 percentage point, less than the 52.1 percent expected by analysts.

However, this may be a case of be greedy when others are fearful.  “If it pulls back to $14 I’d look at it from the long side,” adds Terranova.

The Fast Money Liquidator is likely bullish due to Nvidia's long-term plan to move beyond designing graphics chips for PCs and into mobile devices.

Nvidia has said it expects revenues from its new Tegra 3 processor to hit $1 billion in 2012, with most growth in the second half of the year.

After Hours Action: NVDA


NEW FEATURE: We're  trying out a new feature just for history buffs. Wall Street History - How Wall Street Got Its Name -Click here to check it out


Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to

Trader disclosure: On Feb 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long HPQ; Terranova is long IBM; Terranova is long MCD; Terranova is long SWN; Terranova is long EMC; Terranova is long OXY; Terranova is long SBUX; Terranova is long LQD; Terranova is long UNG puts; Finerman is long AAPL; Finerman is long BAC; Finerman is long JPM; Finerman is short IBM calls; Finerman is long HPQ; Finerman is long LIZ; Finerman is long NTAP; Finerman is long PACD; Kelly is long GLD; Kelly is long TLT; Kelly is long T-Notes futures; Kelly is short Yen; Kelly is short Swiss Franc; Kelly is short Eurostoxx50; Seymour is long AAPL; Seymour is long INTC; Seymour is long SBUX

For Mike Khouw
No disclosures

For T. Boone Pickens
No disclosures

For Michael Ward
(GM): Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company.  Sterne, Agee & Leach, Inc. has, over the past 12 months, managed or co-managed a public securities offering or provided other investment banking services for the subject company. Sterne, Agee & Leach, Inc. received compensation for products or services other than investment banking services from the subject company in the past 12 months. The Sterne Agee analyst who has active coverage on this company owns a position in the subject company.  Sterne, Agee & Leach, Inc. or its affiliates beneficially own 1% or more of any class of common equity securities of the subject company.

For Carter Worth
Oppenheimer & Co. Inc. makes a market in the securities of AAPL
Oppenheimer & Co. Inc. makes a market in the securities of SBUX. with wires.

Related Tags