The leader in artificial intelligence chips, Nvidia (NVDA), crushed Wall Street expectations for its fiscal third quarter on Tuesday night as a result of a sharp increase in the sales of AI processors for data centers. Additionally, it guided higher than the current quarter's expectations. However, in prolonged trade, NVDA's stock dropped.
For the quarter that concluded on October 29, the Santa Clara, California-based corporation had adjusted earnings per share of $4.02 on sales of $18.12 billion. FactSet's survey of analysts predicted that Nvidia will make $3.37 per share on $16.19 billion in sales. Nvidia's earnings increased by 593% year over year, while sales increased by 206%.
Thanks to the ferocious demand for its processors for AI applications, Nvidia reported double-digit percentage growth in sales and earnings for the second quarter in a row in its Q3 report.
Data center sales for Nvidia reached a record $14.51 billion in the third quarter, up 279% from the same period the previous year. Sales of data centers rose 41% from the second quarter.
NVDA Shares Fall Following Report
NVDA Shares Fall Following ReportNvidia predicted $20 billion in sales for the current quarter, a 231% increase over the previous year. Sales of $17.96 billion were projected by analysts for the fiscal fourth quarter that ends in January.
NVDA stock fell 1% to 494.27 in after-hours trading on the stock market today. Tuesday's regular session saw a 0.9% decrease in NVDA stock, which ended at 499.44.
According to a press release, Chief Executive Jensen Huang stated, "Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI."
cloud service providers were the first movers, and the next waves are starting to build," he explained. "Nations and regional CSPs (cloud service providers) are investing in AI clouds to serve local demand, enterprise software companies are adding AI copilots and assistants to their platforms, and enterprises are creating custom AI to automate the world's largest industries."
Nvidia is a Newly Emerging Star.
IBD MarketSmith charts show that on November 9, NVDA stock emerged from a double-bottom base at a buy point of 476.09.
Following the company's announcement of new data center processors optimized for AI last week, Nvidia's stock price increased. Nvidia unveiled the GH200 Grace Hopper Superchip and the HGX H200 AI computing platform at the SC23 supercomputing conference in Denver.
IBD Stock Checkup shows that Nvidia is ranked #1 out of 37 stocks in IBD's fabless semiconductor industry group. The IBD Composite Rating for NVDA stock is 98 out of 99.
Moreover, NVDA stock is included in three IBD lists: Tech Leaders, Leaderboard, and IBD 50. As one of the Magnificent Seven stocks that have propelled the market higher this year is Nvidia.
https://greenbusinesses.com/author/mandiripinjamandana/
https://community.theconstructor.org/user/mandiripinjamandana
https://www.diversityofficermagazine.com/diversityjobs/author/mandiripinjamandana/
https://hihello.me/p/d8d6e7c1-3d7b-4779-b3d1-ca56f2b272c3?f=live
https://teachers.net/jobs/author/mandiripinjamandana/
