On September 13, 2023, Jensen Huang, the CEO and Co-Founder of Nvidia, is scheduled to participate in a bipartisan Senate Artificial Intelligence Insight Forum in Washington.
Following the chipmaker’s fiscal third-quarter results that exceeded Wall Street’s expectations, Nvidia’s shares dipped by 2% in after-hours trading on Tuesday.
Here’s a breakdown of Nvidia’s performance compared to the analyst consensus from LSEG (formerly known as Refinitiv):
- Adjusted earnings stand at \(4.02 per share, surpassing the expected \)3.37.
- Revenue reached \(18.12 billion, higher than the projected \)16.18 billion. Nvidia reported a 206% year-over-year income growth for the quarter ending on October 29.
During the third quarter, Nvidia introduced the GH200 GPU, featuring increased storage capacity compared to the current H100 and an additional Shoulder processor. The H100, known for its high price tag and strong demand, was notably acquired by the Australian-based bitcoin mining data center owner, Iris Energy, purchasing 248 units for a total of \(10 million, averaging around \)40,000 per unit.
While Nvidia previously relied heavily on GPU profits from PC gaming, the shift towards data center installations has become the primary revenue driver. Analysts anticipate Nvidia’s data center revenue to surge by 239% to $12.97 billion.
The market saw a rise in demand for Nvidia’s GPUs following the launch of the ChatGPT chatbot by the Microsoft-backed startup OpenAI in 2022, prompting many companies to explore integrating similar generative AI capabilities into their software.
Despite its success, Nvidia faces challenges such as competition from AMD and revenue constraints due to export regulations impacting GPU sales in China.
Leading up to the recent announcement, some analysts predicted another quarter of underperformance from Nvidia.
In a client note, Raymond James’ Srini Pajjuri and Jacob Silverman expressed confidence in Nvidia’s stock with “strong buy” recommendations, citing the expanding adoption of Gen AI across various industries. They anticipate Nvidia maintaining an 85% market share in Gen AI accelerators even in 2024.
Executives are set to engage with experts to delve into the results starting at 5 p.m. ET.
