Was there really any doubt?
Nvidia Crushes Earnings on Soaring AI Chip Demand. The Stock Is Still Slipping
Nvidia’s revenue was up 206% in its latest quarter, beating Wall Street’s expectations. The chip maker also provided a revenue forecast for the January quarter handily above estimates.
But the stock’s huge 2023 gains left investors wanting even more. Shares wavered in after hours trading.
The semiconductor company reported October quarter adjusted earnings per share of $4.02, compared to Wall Street’s consensus estimate of $3.37, according to FactSet. Revenue of $18.1 billion was above analyst expectations of $16.2 billion. Data center revenue surged in the October quarter to $14.5 billion, up 279% from the prior year and up 41% from the prior quarter.
The outlook was also robust. For the current quarter, Nvidia provided a revenue forecast range that, at the midpoint, was $20 billion. That’s above the consensus of $18.0 billion.
“Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI,” Nvidia CEO Jensen Huang said in the press release. “NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off.”
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Nvidia Crushes Earnings on Soaring AI Chip Demand. The Stock Is Still Slipping
Nvidia’s revenue was up 206% in its latest quarter, beating Wall Street’s expectations. The chip maker also provided a revenue forecast for the January quarter handily above estimates.
But the stock’s huge 2023 gains left investors wanting even more. Shares wavered in after hours trading.
The semiconductor company reported October quarter adjusted earnings per share of $4.02, compared to Wall Street’s consensus estimate of $3.37, according to FactSet. Revenue of $18.1 billion was above analyst expectations of $16.2 billion. Data center revenue surged in the October quarter to $14.5 billion, up 279% from the prior year and up 41% from the prior quarter.
The outlook was also robust. For the current quarter, Nvidia provided a revenue forecast range that, at the midpoint, was $20 billion. That’s above the consensus of $18.0 billion.
“Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI,” Nvidia CEO Jensen Huang said in the press release. “NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off.”
Nvidia's AI Chip Demand Is Strong. But Supply Counts.
Nvidia stock has surged 245% this year. The big question is what management will say about Nvidia's progress in alleviating supply constraints.