NVIDIA Reports Q3 Earnings and Reveals that Sales Grew 55%

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As demand for artificial chips heats up, Nvidia reported in its third quarter financial report that data center sales had grown 55%.

The company issued its fiscal third quarter financial results this Wednesday after the bell.

Shares exploded over 5% in extended trading after it reported and they are now up over 120% YTD .

According to Needham analysts Raji Gill, the company had a significant beat for the quarter.

The company also issued a bullish forecast for revenue in the current quarter ending in January.

For the quarter ending October 31st, Nvidia reported earnings adjusted of $1.17 compared to $1.11 that had been expected. This was a growth of 60% YOY.

Revenue at $7.10 billion was better than the $6.82 billion that had been expected, a growth of 50% YOY.

The company said it expects to report around $7.4 billion for the current quarter ending in January. Analysts had been expecting $6.86 billion.

Nvidia reported $2.9 billion in data center sales, up 55% from $1.9 billion in the same quarter last year. According to CFO Colette Kress, growth was driven by GPU sales to “hyperscale customers,” an industry term that means cloud providers such as Amazon AWS, Microsoft Azure and Google Cloud.

The company’s biggest market, gaming, had reported $3.2 billion in sales, up 42% from $2.27 billion in the same quarter last year. The company cited increased sales of its GeForce consumer graphics processors, but the company said supply remained limited.

Nvidia said automotive sales were $135 million, which was up 8% annually, but down 11% from the previous quarter.

Earlier this month CEO Jensen Huang suggested the company could be one of the main suppliers for technology companies building the “metaverse.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.

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