Nvidia Surpasses Expectations in Q3, Despite Stock Dip

Nvidia, the AI chip leader based in Santa Clara, California, exceeded Wall Street’s projections for its fiscal third quarter, primarily driven by a surge in sales of AI processors for data centers. Although the company provided a positive outlook for the current quarter, NVDA stock experienced a 1% dip in after-hours trading.

For the quarter ending Oct. 29, Nvidia reported an impressive adjusted earnings of $4.02 per share on sales totaling $18.12 billion. This surpassed analysts’ expectations, who had forecasted earnings of $3.37 per share on sales of $16.19 billion. Year-over-year, Nvidia’s earnings witnessed an extraordinary 593% increase, with sales soaring by 206%.

This marked the second consecutive quarter of triple-digit percentage growth in both sales and earnings for Nvidia, underscoring the substantial demand for its AI processors. Notably, data center sales, a significant contributor to Nvidia’s success, experienced a remarkable 279% YoY increase to reach a record $14.51 billion. Sequentially, data center sales grew by 41%.

Looking ahead, Nvidia provided an optimistic sales forecast of $20 billion for the current quarter, reflecting a substantial 231% YoY increase. This exceeded analysts’ predictions of $17.96 billion for the fiscal fourth quarter ending in January.

Despite the stellar financial performance and positive guidance, NVDA stock faced a 1% decline in after-hours trading, closing at $494.27. During the regular session, the stock declined 0.9% to close at $499.44.

Jensen Huang, Nvidia’s Chief Executive, attributed the robust growth to the industry’s shift towards accelerated computing and generative AI. He highlighted that early adopters included large language model startups, consumer internet companies, and global cloud service providers, with additional waves of adoption on the horizon.

Nvidia’s recent breakthrough came on Nov. 9 when NVDA stock broke out of a double-bottom base, reaching a buy point of $476.09. The company also announced new data center processors optimized for AI at the SC23 supercomputing conference in Denver, introducing the HGX H200 AI computing platform and GH200 Grace Hopper Superchip.

Nvidia currently holds the top position out of 37 stocks in IBD’s fabless semiconductor industry group, with an impressive IBD Composite Rating of 98 out of 99. Additionally, NVDA stock is featured on three IBD lists: IBD 50, Leaderboard, and Tech Leaders. It is also one of the Magnificent Seven stocks that have driven the market higher this year.

As investors continue to monitor Nvidia’s performance and industry trends, the company remains a prominent player in the AI chip market, showcasing consistent growth and innovation.

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rajoute la source https://www.investors.com/news/technology/nvda-stock-nvidia-obliterates-q3-estimates/
Title: Nvidia Surpasses Expectations in Q3, Despite Stock Dip

Nvidia, the AI chip leader based in Santa Clara, California, exceeded Wall Street’s projections for its fiscal third quarter, primarily driven by a surge in sales of AI processors for data centers. Although the company provided a positive outlook for the current quarter, NVDA stock experienced a 1% dip in after-hours trading.

For the quarter ending Oct. 29, Nvidia reported an impressive adjusted earnings of $4.02 per share on sales totaling $18.12 billion. This surpassed analysts’ expectations, who had forecasted earnings of $3.37 per share on sales of $16.19 billion. Year-over-year, Nvidia’s earnings witnessed an extraordinary 593% increase, with sales soaring by 206%.

This marked the second consecutive quarter of triple-digit percentage growth in both sales and earnings for Nvidia, underscoring the substantial demand for its AI processors. Notably, data center sales, a significant contributor to Nvidia’s success, experienced a remarkable 279% YoY increase to reach a record $14.51 billion. Sequentially, data center sales grew by 41%.

Looking ahead, Nvidia provided an optimistic sales forecast of $20 billion for the current quarter, reflecting a substantial 231% YoY increase. This exceeded analysts’ predictions of $17.96 billion for the fiscal fourth quarter ending in January.

Despite the stellar financial performance and positive guidance, NVDA stock faced a 1% decline in after-hours trading, closing at $494.27. During the regular session, the stock declined 0.9% to close at $499.44.

Jensen Huang, Nvidia’s Chief Executive, attributed the robust growth to the industry’s shift towards accelerated computing and generative AI. He highlighted that early adopters included large language model startups, consumer internet companies, and global cloud service providers, with additional waves of adoption on the horizon.

Nvidia’s recent breakthrough came on Nov. 9 when NVDA stock broke out of a double-bottom base, reaching a buy point of $476.09. The company also announced new data center processors optimized for AI at the SC23 supercomputing conference in Denver, introducing the HGX H200 AI computing platform and GH200 Grace Hopper Superchip.

Nvidia currently holds the top position out of 37 stocks in IBD’s fabless semiconductor industry group, with an impressive IBD Composite Rating of 98 out of 99. Additionally, NVDA stock is featured on three IBD lists: IBD 50, Leaderboard, and Tech Leaders. It is also one of the Magnificent Seven stocks that have driven the market higher this year.

As investors continue to monitor Nvidia’s performance and industry trends, the company remains a prominent player in the AI chip market, showcasing consistent growth and innovation.

Source: Investor’s Business Daily