Nvidia reported third-quarter earnings on the 21st (local time) that far exceeded market expectations.
On the same day, Nvidia announced that it recorded sales of $18.12 billion and net profit of $4.02 per share in the third quarter of the fiscal year.
This exceeded the average expectation of analysts compiled by financial information company LSEG by about 10%. The market forecast was $16.18 billion in sales and $3.37 in net profit per share.
Revenue for the third quarter, which was announced this time, increased 206% from the same period last year ($5.93 billion), and earnings per share increased 59% from the same period last year ($0.58). Over the past year, Nvidia revenue and earnings per share have increased by nearly three times and seven times, respectively.
Nvidia also presented its fourth-quarter sales forecast at around $20 billion, which is higher than Wall Street’s expectation. Nvidia explained the background of the rise in sales, saying, “It’s driven by global demand for large-scale language model training, reasoning, and Generative AI applications.”
However, Nvidia said that sales in China and other regions, which are controlled by semiconductor exports, accounted for about 20-25%, adding, “Sales in these regions are expected to fall considerably in the fourth quarter.” Nvidia expects growth outside of the region to offset falling sales in China and other countries.
Nvidia shares fell 0.92% in regular trading and more than 1% in after-hours trading after the earnings announcement, as the Q3 earnings report, which exceeded expectations, also cited negative impact in the fourth quarter.
Earlier on the 13th, Nvidia unveiled its new GPU (GPU) product H200, which is applied to large-scale language model (LLM) training, raising market expectations, and Nvidia’s stock rose 2.3% the day before the third quarter’s earnings release, hitting an all-time high.
