On Tuesday, Nvidia Corporation (NASDAQ: NVDA) topped analyst projections with its fiscal third quarter results as demand for its GPUs exceeded supply amid a generative AI hype. However, Nvidia shares dropped as the AI chip leader warned about the damaging impacts of US chip export curbs on its fourth quarter revenue.
Third Quarter Results Blew Past Estimates
For the quarter that ended on October 29th, Nvidia reported its revenue grew 206% YoY to $18.12 billion, topping LSEG’s estimate of $16.18 billion. Net income amounted to $9.24 billion, or $3.71 per share, skyrocketing from last year’s comparable quarter when it amounted to $680 million, or 27 cents per share. Adjusted earnings per share amounted to $4.02, also topping LSEG’s estimate of $3.37 per share.
The gaming segment brought in $2.86 billion as revenue rose 81%, also topping StreetAccount’s estimate of $2.68 billion.
Data center revenue rose 279% to $14.51 billion, exceeding StreetAccount’s estimate of $12.97 billion. Half of this revenue came from cloud infrastructure providers, among which is Amazon.com Inc (NASDAQ: AMZN). Although Amazon dominated the first cloud era, it does not have a head start in the new AI cloud era. Even Amazon is forced to fight in a ...