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Nvidia’s Earnings In The Third Quarter Beats Wall Street Expectations Again
Last Updated on: November 13th, 2024
After the closing of markets on Tuesday, Nvidia reported its third-quarter earnings. Just like last time, Nvidia?s revenue beat the expectations of Wall Street yet again. The rise and high prospects of artificial intelligence increase the demand for company?s chips.
According to Yahoo Finance,
?The chipmaker reported adjusted earnings per share of $4.02 on revenue of $18.12 billion, both of which topped analyst expectations. Analysts had expected adjusted earnings per share to tally $3.36 on revenue of $16.1 billion, according to data from Bloomberg. Third quarter revenue increased 34% from the prior quarter and 206% from a year ago.?
This reflects how an increase in the demand for AI has boosted the sales of the company?s chips throughout 2023.
Apart from that, Nvidia?s revenue guidance for the current quarter also topped Wall Street estimates. The value came at $20 billion (plus/minus 2%). As a result, many Wall Street analysts are projecting their fourth-quarter guidance of $17.8 billion.
Nvidia feels that the company?s strong growth is reflective of various essential steps that it took early this year. One of them was when the company did a broad industry platform transition to accelerated computing and generative AI LLM startups from general computing chips. Nvidia?s revenue is expected to grow in the future for this reason.
The CEO of the company, Jensen Huang, is of the opinion that consumer internet companies and cloud service providers are also moving towards AI-large language model startups. He also added that as the next waves are starting to build, various cloud service providers are building AI clouds to cater to local demands.
However, with new export restrictions to China, the company saw its share value go down by 1% on the same night. The company expects its sales to such destinations will decline a lot in the next few months.
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