Nvidia stock, a leading chipmaker, has announced robust fiscal third-quarter results, with revenue tripling year over year. However, the company anticipates a negative impact in the next quarter due to export restrictions affecting sales to organizations in China and other countries. The export limitations are expected to significantly reduce sales to these destinations in Q4 of fiscal 2024.
Colette Kress, Nvidia’s finance chief, stated that although the decline in sales to certain regions is anticipated, it will be offset by strong growth in other areas. The company is actively collaborating with clients in the Middle East and China to secure U.S. government licenses for the sales of high-performance products.
The fiscal Q3 results surpassed Wall Street expectations, reporting earnings of $4.02 per share (adjusted) against the expected $3.37 per share. Revenue reached $18.12 billion, exceeding the estimated $16.18 billion. Nvidia’s net income stood at $9.24 billion, or $3.71 per share, a substantial increase from the same quarter the previous year.
Notably, data center revenue experienced exceptional growth, totaling $14.51 billion, a remarkable 279% increase. Cloud infrastructure providers, including Amazon, contributed significantly to this segment. The gaming segment also performed well, contributing $2.86 billion, an 81% increase.
Looking ahead, Nvidia has provided guidance for approximately $20 billion in revenue for the fiscal fourth quarter, implying nearly 231% revenue growth. Despite facing challenges such as competition from AMD and export restrictions impacting sales in China, analysts remain optimistic about Nvidia’s position, particularly in the growing demand for GPUs driven by artificial intelligence adoption.
The shift from GPU sales for PC gaming to deployments in server farms has played a key role in Nvidia’s revenue growth. The company is actively working on plans to address supply challenges and maintain its dominant position in the market.
In conclusion, while Nvidia’s stock faced a 1% decline in after-hours trading, the overall performance for the year has been exceptional, with a 241% increase. This outperformance significantly exceeds the S&P 500 index, which saw an 18% increase during the same period. Source thedailycourierng news