Nvidia (NVDA) smashed analyst expectations for its third-quarter financials after the bell on Tuesday, with adjusted earnings per share (EPS) and revenue several times higher than in the year-ago quarter, as the AI space continues to heat up.
Nvidia reported net income of $9.2 billion on diluted EPS of $3.71 per share, up 1,274% from this time last year.1 Revenue jumped 206% to $18.1 billion on massive gains in data centre sales.
Nvidia expects fourth-quarter revenue of $20 billion, plus or minus 2%, but investors clearly had even higher expectations despite the massive growth, as the stock fell about 1% in after-hours trading.
The company’s data centre business, which is key to companies providing popular services such as cloud and AI, has reached stratospheric heights. Last quarter, data centre revenue hit a record $14.51 billion, up from $3.8 billion at this time last year and ahead of the $12.7 billion expected by analysts polled by Visible Alpha.
Of the chipmakers, Nvidia is perhaps best positioned to benefit from the continuing surge of interest in AI. Nvidia’s products are in high demand and the company enjoys up to 95% market share in the AI chip space.
This is despite the fact that the US has introduced export controls that could limit the chipmaker’s ability to supply products to China, one of the fastest growing markets. That’s because Nvidia has responded quickly with a new range of products designed for the Chinese market that comply with US export restrictions.
The day before its third-quarter earnings report, Nvidia’s stock hit an all-time high of more than $504 per share. The company’s share price has more than tripled in the past year.
