By: Isha Das
Technology company NVIDIA reported a record Q3 revenue of $18.12 billion, topping the estimated $16.18 billion. The firm's earnings per share (EPS) also outperformed expectations, reaching $4.02 on an adjusted basis as opposed to the forecasted $3.37. The news sent NVIDIA's stock trading upwards at $506 per share in pre-market trading; a 1.3% increase with the company's total market capitalization now standing at approximately $1.2 trillion.
NVIDIA's growth has been primarily fuelled by sales in AI hardware. The earnings showed a 34% increase over the last quarter and a 206% rise compared to Q3 2022. NVIDIA's CEO, Jensen Huang, attributes this growth to the transition from general-purpose to accelerated computing and generative AI. This has set the company to be a strongly sought-after investment, with its shares escalating over 248% year-to-date.
Contributing 20-25% of NVIDIA's data center revenue, the Chinese market plays a critical role in the firm's business. Notably, this implies that as much as $3.6 billion of Q3 earnings may be attributed to Chinese sales. Yet, despite expectations for a 'significant' Q4 decline in Chinese business owing to the US's partial ban on chip exports, confidence remains that strong growth in other regions will 'more than offset' the losses.
NVIDIA expects a robust global chip market and anticipates further trends in AI startups, consumer internet firms and cloud service providers to keep fuelling its growth.
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