Nvidia Posts $18B Q3 Revenue, Cites Generative AI as Key Driver
Nvidia announced revenue of $18.12 billion for the third quarter of 2023, a record for the company, while the company's market cap has now reached $1.22 trillion.
The better-than-expected earnings followed a 12-month growth trend, during which the company reported a 34% increase in revenue from the previous quarter and a 206% increase in Q3 2022.
While the company beat estimates, the strong quarter didn't impress investors or shareholders as the company's stock recently rose to $499.60 per share.
NVIDIA co-founder and CEO Jensen Huang confirmed the growth in artificial intelligence (AI) hardware sales:
“Our strong growth reflects the broad industry platform shift from general purpose to accelerated computing and NVIDIA's proprietary AI.”
He went on to note that AI startups, consumer internet companies and cloud service providers are the “first movers” and “the next waves are starting to build.”
The record quarter comes at a time of transition for both the company – headquartered in Santa Clara, California – and the global chip market.
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The United States recently imposed a partial ban on chip exports to several countries, including China. Over the past several quarters, roughly 20%–25% of the company's data center revenue has come from the Chinese market.
Nvidia's most recent data center reported $14.51 billion in Q3 revenue, with up to $3.6 billion likely to come from sales in China.
On a call to discuss Q3 earnings, the company's chief financial officer, Colette Kress, told shareholders that the export ban would cause business activity in China to “decline significantly” in the fourth quarter. However, Cress added, the company believes those losses will be “more than offset by strong growth in other regions.”
