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A sign has been posted in front of the Nvidia headquarters
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Nvidia returned to its roots late Wednesday when earnings were reported to have outpaced the data-center business by selling videogame chips, as the company re-established itself in a position to take advantage of the future of computing.
San Jose, California. The based company topped the forecast, and issued a forecast that beat expectations. But the company warned investors that it runs into a fourth-quarter supply disruption for components for the production of its latest chips and systems.
Although consistent with consensus estimates, the results attracted investors. The stock fell nearly 2% at 7:00 pm Eastern time after a short rise of 1.7% in the extended session on Wednesday.
Nvidia
(Ticker: NVDA) is in the midst of a transformation for a company once known for its powerful chips, producing videogame graphics at a time when its chips run some of the world’s most advanced data centers with chips designed for artificial intelligence and machine learning. In the last quarter, its data-center business, partly aided by Melanox Acquisitions, drove sales of its videogame chip, which has been the company’s revenue and profit backbone for decades.
Beating analysts’ estimates by hand, the chip maker reported net income of જા 1.34 billion for the third quarter of the fiscal year, compared to 8 99899 million in the same period a year earlier, or 2. 2.12 per share, compared to a net profit of 1. 1.45 billion. Adjusted for stock returns, among other things, earnings were also $ 2.91. Revenue rose 57% to 4. 73.473 billion from 0 3.01 a year earlier.
Analysts expected the stock to earn 1. 1.68 on sales of 4. 42.42 billion; The consensus of adjusted earnings was for 2.58 per share.
CEO Jensen Huang said, “Nvidia is firing on all cylinders, achieving gaming, data center and overall record revenue. “New Nvidia GeForce RTX [graphics processing unit] Our biggest pay leap ever offered and demand is overwhelming. Nvidia RTX has made a ray by finding a new standard in gaming. “
Breaking Nvidia’s business rift, the company reported slightly higher than expected videogame revenue – mostly graphics chips it sells computers 2.27 billion, compared to the computers 2.27 billion consensus estimate of power on personal computers. Nvidia said sales benefited from its new graphics cards, which were unveiled in September, and will console sales of the chip, possibly the ones that power the Nintendo Switch.
In an interview with Baron, Nvidia CFO Colette Cress said the company does not see a customer base fully embracing its latest technology, although the company’s videogame chips have sold well.
“So when we go from generation to generation and provide a new architecture for the consumer market, we are still not on a 100% install base on the most current architecture until we actually start the next pay launch. “You’ll have its variations as it comes in one wave: we’ll start with the desktop, then we’ll move on to the notebook versions, and [eventually] Will come out with a host of different products. “
Data-center sales also beat expectations. Nvidia reported revenue of 1. 1.9 billion, while Wall Street expected 1.8 billion. Israeli networking company Melanox, which Nvidia acquired earlier this year, has contributed about a third of data center sales. But the new ampere-based semiconductor pushed the segment further.
Crash said the demand for new Ampere chips for both videogames and data centers has put pressure on companies’ suppliers and manufacturing partners. “We have limited supply [the fourth quarter] For both gaming and the data center, ”said Cress.
Other segments of Nvidia, such as automotive and professional visualization, also beat consensus predictions.
The company said it expects fourth-quarter sales of .8 8.8 billion fiscal, compared to the consensus estimate of .4 141 billion. Nvidia did not provide earnings per share guidance in the fourth quarter.
Nvidia stock closed 0.1% higher at $ 537.15 in Wednesday’s regular session. The stock has risen 128% this year
PHLX semiconductor
The index rose 37%.
Write to Max a. Cherney, [email protected]
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