Nvidia’s revenue triples as AI chip boom continues
Nvidia’s revenue triples as AI chip boom continues Nvidia’s results surpassedthe fiscal fourth quarter.
The stock of Nvidia declined 1% in extended trading on Tuesday after the chipmaker reported better-than-expected financial results for the third quarter. Due to export restrictions, sales to organizations in China and other countries will be adversely affected in the next quarter.
Colette Kress, Nvidia’s finance chief, wrote to shareholders that Nvidia anticipates a decline in sales to these destinations in the fourth quarter of fiscal 2024, but that the decline will be more than offset by strong growth in other regions.
The CEO of Nvidia said Nvidia’s revenue triples as AI chipNvidia US government licenses to sell high-performance products to clients in the Middle East and China. Nvidia is developing new data center products that comply with government policies and don’t require licenses.
During the quarter ending Oct. 29, Nvidia’s revenue grew 206% over last year. A year ago, earnings were $680 million, or 27 cents per share, but in this quarter they were $9.24 billion, or $3.71 per share.
Compared to the StreetAccount consensus of $12.97 billion, the company’s data center revenue totaled $14.51 billion. Nvidia said half of its data center revenue came from cloud infrastructure providers such as Amazon, and the other half came from large corporations and consumer internet entities.
$2.86 billion were contributed by the gaming segment, up 81% from $2.68 billion expected by StreetAccount.
Based on Nvidia’s guidance, the company expects $20 billion in revenue for the fourth quarter of fiscal 2019. That implies
is still working on its plan to grow year, Kress said.