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Nvidia Corp (NASDAQ:NVDA) says its revenue more than tripled year-on-year in its third financial quarter. Its shares are still slightly down in extended hours.
Nvidia says China restrictions could limit sales
What’s not sitting well with investors is that the management said export restrictions could limit sales in the current quarter.
Nvidia still, however, sees revenue at about $20 billion in Q4 which suggests a whopping 231% annualised growth on the back of strength in other regions. On CNBC’s “Closing Bell: Overtime”, James Demmert of Main Street Research said today:
There’s a lot of deep pocketed customers out there that are willing to and need to spend this money [on Nvidia chips].
In August, Nvidia Corp announced the GH200 – a next-generation graphics processing unit with more memory than the H100. Its shares are currently up close to 250% versus the start of 2023.
Data center revenue remained exceptional
Nvidia said it had a super strong third quarter primarily due to an exceptional 279% year-over-year increase in the data centre revenue to $14.51 billion.
Analysts, in comparison, had called for $12.97 billion from the segment that includes its H100 and A100 chips that are key for artificial intelligence. According to Demmert:
This is a multi-year transformational change and we’re at early stages. They are at poll position and I’d like to say they’re the only game in town or as we like to call them the magnificent one.
Gaming brought in $2.86 billion in revenue in Q3 – up a better-than-expected 81% versus last year. Wall Street currently sees upside in Nvidia stock to $655 on average.
Watch here: https://www.youtube.com/embed/RueW2uq6fCM?feature=oembedNotable figures in Nvidia Q3 earnings release
- Earned $9.24 billion versus the year-ago $680 million
- Per-share earnings also climbed from 27 cents to $3.71
- Adjusted EPS printed at $4.02 as per the earnings release
- Revenue jumped 206% year-on-year to $18.12 billion
- Consensus was $3.37 a share on $16.18 billion in revenue
The semiconductor behemoth will pay a quarterly cash dividend of 4 cents a share on December 28th. Demmert added:
Can they keep up with this incredible demand? I think this is where you have a company that’s extremely well-managed. Jensen knows this business; he knows it well.
The post Nvidia dubbed the ‘magnificent one’ after revenue triples in Q3 appeared first on Invezz
