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Nvidia (NVDA) Q3 2024 Earnings Report

by SuperiorInvest

Nvidia co-founder and CEO Jensen Huang arrives at a bipartisan Senate AI insights forum in Washington on September 13, 2023.

Sara Silbiger | Bloomberg | fake images

Analysts look for NVIDIA to meet the optimistic forecast it issued in August to increase revenue by almost 173% year over year in the fiscal third quarter, as companies and governments thirst for the intelligence chip maker’s graphics processing units artificial. Analysts are counting on even faster growth (195%) for the fiscal fourth quarter.

These are the numbers expected by Wall Street analysts surveyed by LSEG, formerly known as Refinitiv:

  • Profits: $3.37 per share, adjusted
  • Revenue: $16.18 billion

During the quarter, Nvidia announced the GH200 GPU, which has more memory than the current H100 and an additional built-in Arm processor. The H100 is expensive and in high demand. Nvidia said Australia-based Iris Energy, which owns bitcoin mining data centers, was buying 248 H100s for $10 million, which is equivalent to about $40,000 each.

Just two years ago, sales of GPUs for playing video games on PC were Nvidia’s largest source of income. The company now derives most of its revenue from deployments within server farms. Analysts surveyed by StreetAccount expect Nvidia’s data center revenue to reach $12.97 billion, which would be an increase of 239%.

The introduction of the ChatGPT chatbot microsoftThe OpenAI-backed startup in 2022 had many companies looking for ways to add similar generative AI capabilities to their software. As a result, demand for Nvidia GPUs strengthened.

Nvidia faces obstacles, including competition from amd and lower revenue due to export restrictions that may limit sales of its GPUs in China.

Some analysts said before Tuesday’s report that they anticipated another quarter of outperformance from Nvidia.

“GPU demand continues to outpace supply as Gen AI adoption broadens across industry verticals,” Raymond James’ Srini Pajjuri and Jacob Silverman wrote in a note to clients on Monday, with a recommendation of “strong buy” on Nvidia shares. “We are not too worried about competition and expect NVDA to maintain >85% share in Gen AI accelerators even in 2024.”

Executives will discuss the results with analysts in a conference call beginning at 5 p.m. ET.

This is breaking news. Please check for updates.

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