Nvidia Corporation (NASDAQ:NVDA) shares are expected to open 0.2% lower when Nasdaq opens on Wednesday, extending a nearly 1% drop on Tuesday.
This comes despite yet another significant revenue beat for the fabless semiconductor giant in the third quarter with sales of $18.12 billion, more than triple what it reported in the year-ago quarter and well above Street expectations of $16.18 billion.
Adjusted earnings were $4.02 per share, compared to expectations of $3.37.
Data center revenue was $14.51 billion, up 279% year-over-year and above the consensus of $12.97 billion.
However, the company acknowledged that restrictions on sales of its GPUs in China and other countries will have an impact in the fourth quarter.
“We expect that our sales to these destinations will decline significantly in the fourth quarter of fiscal 2024, though we believe the decline will be more than offset by strong growth in other regions,” Nvidia said in a letter to shareholders.
Nvidia guided for revenue of $20 billion in the period, also more than triple what it produced in the year-ago quarter.
Notably, Nvidia’s stock is up more than 241% this year, driven by surging demand for its artificial intelligence (AI) chips. A sizeable expectations beat was likely already priced in.
During the period, Nvidia unveiled its GH200 GPU, which has 1.4x the memory bandwidth and 1.8x the memory capacity of the H100 chip that OpenAI used to train CPT-4. The chip is expected to debut in 2024.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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