TECH - Nvidia Posts Q3 Beat Driven By Data Center Revenue CEO Says Generative AI 'Taking Off': Why Is The Stock Down? | Benzinga
Nvidia Corp. (NASDAQ:NVDA) delivered yet again by reporting forecast-beating third-quarter results Tuesday.
The top- and bottom-line results exceeded Street expectations, as Data Center revenue rose to a record, thanks to a broader industry transition from general-purpose to accelerated computing and generative AI. The company also issued upbeat revenue guidance for the fourth quarter but the stock slipped in after-hours due to the management commentary on the impact of the U.S. government’s China import restrictions.
Nvidia’s Key Q3 Numbers: Santa Clara, California-based Nvidia reported third-quarter earnings of $4.02 per share, compared to the $3.36-per-share consensus estimate. The bottom line improved from the year-ago quarter’s 58 cents per share and preceding quarter’s $2.70 per share.
Revenue increased 206% year-over-year and 34% sequentially to $18.12 billion, exceeding the Street forecast of $16.12 billion.
When Nvidia reported its June quarter results in late August, it guided third-quarter revenue to $16 billion, plus or minus 2%.
The non-GAAP gross margin came in at 75% vis-a-vis the guidance of 72.5%, plus or minus 50 basis points. This marked an improvement from the second quarter’s 71.2% and the year-ago quarter’s 56.1%.
Commenting on the results, CEO Jensen Huang said, “Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI.”
“Large language model startups, consumer internet companies and global cloud service providers were the first movers, and the next waves are starting to build,” he said.
“NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative ...