Nvidia reported fiscal third-quarter earnings on Wednesday that surpassed Wall Street’s expectations for both sales and earnings. The company also provided stronger-than-expected guidance for fourth-quarter sales, leading to a rise in shares during extended trading. Nvidia has become a leading company, primarily due to high demand for its AI chips, known as GPUs. Nvidia’s chips are used by major AI companies to develop advanced models and technologies, solidifying its position in the market.
Specifically, Nvidia’s earnings per share reached $1.30 adjusted, exceeding the estimated $1.25. Revenue hit $57.01 billion, also surpassing the estimated $54.92 billion. The company anticipates approximately $65 billion in sales for the current quarter, against analysts’ expectations of $1.43 in earnings per share on $61.66 billion of revenue. Net income for the quarter was reported at $1.30 per diluted share, or $31.91 billion, marking a 65% increase from $19.31 billion in the same period last year.
Data centre sales represent a significant portion of Nvidia’s business, reaching $51.2 billion and exceeding analyst expectations of $49.09 billion. This figure represents a 66% rise year-over-year, with $43 billion attributed to “compute,” referring to the company’s GPUs, and $8.2 billion coming from networking components. Before its focus on AI, Nvidia was known for producing chips for 3D video games. Gaming revenue reached $4.3 billion, a 30% increase from the previous year, while professional visualisation sales amounted to $760 million, a 56% increase year-over-year.
Furthermore, Nvidia is focusing on robotics as a key growth area. Automotive and robotics sales in the third quarter totalled $592 million, representing a 32% increase compared to the prior year. Nvidia counts Microsoft, Amazon, Google, Oracle, and Meta as customers. Nvidia is an American technology company that designs and manufactures graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
