S&P 500 2023 Q3 Earnings Preview: Earnings Expectation Rise Heading Into Earnings Season

It reports those sales in its Professional Visualization business, which rose 109% annually to $643 million. The company said the growth was driven by workstation chip sales and hybrid working. So let me talk about the first statement that you indicated. Most of our data center business that we see is we’re working with customers specifically on their needs to build out accelerated computing and AI. It’s just not a business in terms of where units are being held for that. Now, looking at our inventory that we have on hand and the inventory that has increased, a lot of that is just due to our upcoming architectures coming to market.

It’s unheard of to ship supercomputers to every cloud service provider in a quarter. And so, we’re working hand with every one of them, and every one of them are racing to stand up hoppers. We expect them to have hopper cloud services stood up in Q1.

But questions remain about whether Nvidia’s growth was partially driven by cryptocurrency miners, who like Nvidia’s graphics cards because they are efficient at mining Ethereum. Its professional visualization business, which sells graphics chips for enterprise uses, declined 4% annually to $496 million. Automotive remains small, although it increased 45% year-over-year to $220 million. Nvidia said that revenue from its dedicated cryptocurrency mining chips, CMP, was “nominal,” contributing to a 66% annual decrease in its OEM and other category. “Macroeconomic headwinds across the world drove a sudden slowdown in consumer demand” for the company’s gaming products, Nvidia CFO Colette Kress said on a call with analysts.

NVIDIA (NVDA) Earnings Date, Estimates & Call Transcripts

I guess, a follow-up question on the supply constraints. When do you think that they’ll ease and how should we think about gaming into the January quarter B2B typical seasonality, given I would assume you would continue to be supply constraint? The second is a server that allows the enterprise customers to deploy their AI models out to the edge. And the AI engine, the software suite that we’ve been developing over the last 10 years now have been integrated into this environment and allows the enterprises to basically run AI out of the box. There are three elements of our software products there. First is NVIDIA AI Enterprise, and that puts — that basically puts all of the state-of-the-art AI solvers and engines and libraries that we’ve industrialized and perfected over the years, made it available to Enterprise license.

Nvidia reported second quarter earnings that missed Wall Street expectations for revenue and earnings per share. The NVIDIA (NVDA) company released its Q earnings report on its investor relations website on November 17, 2021. According to the report, NVIDIA pulled in $7.1 billion USD in Non-GAAP revenue – reportedly a record quarter for the company. This was also a win versus the consensus estimate of $6.83 billion, and a pretty hefty win at that. The company achieved a non-GAAP EPS of $1.17 per share versus consensus estimate of $1.1. Both numbers made for a pretty stellar Q3 report for NVIDIA.

As mentioned above, investors will also be focusing on Nvidia’s data center revenue. Nvidia has traditionally specialized in making chips for the gaming and graphics industry, being a pioneer in the development of graphics processing units (GPUs). It turns out that the robust computational capabilities employed by GPUs to power video games and graphics software are also well-suited for technologies like artificial review a girl’s guide to personal finance intelligence (AI) and machine-learning. Both of those technologies are increasingly important for the rapidly growing data center market. Demand for remote computing power increased substantially during the pandemic as more and more people began working from home and businesses were forced to shift certain operations online. That development has helped to boost demand for Nvidia’s chips used by data centers.

  • And the third dynamic is around data center storing software.
  • These computing platforms run NVIDIA AI and NVIDIA Omniverse, software libraries and engines that help the companies build and deploy AI to products and services.
  • Consumer Discretionary has seen the strongest momentum heading into earnings season (+9.5 ppt) followed by Communication Services (+5.9), Technology (+4.6), and Energy (+3.1).
  • Well, Omniverse is going to be an overload, if you will, of virtual worlds that increasingly people call the metaverse.
  • We call it in-network computing because a ton of software is done at the edge at the — within the network itself.

Historically, the rendering of ray tracing and photo realistic images has largely been done on CPUs and for the very first time, you could actually accelerate it with NVIDIA GPUs and RTX GPUs. And so the workstation market is really doing well. The backdrop of that of course is that people are building offices in their homes. As you know, RTX is a fundamental reset of computer graphics. And as you know, we have a large installed base of PC gamers, the new end architecture called GTX based on programmable shatters that we invented some 20 years ago.

S&P 500 2023 Q3 Earnings Preview: Earnings Expectation Rise Heading Into Earnings Season

Hopper, with its revolutionary transformer engine is just in time to meet the surging demand for recommender systems, large language models and generative AI. I think you talked about supply being a headwind at one point. And then, when you were speaking to the networking business, coinmama exchange review I think you talked about supply easing. So I was hoping you can kind of speak to supply if you’re caught up to demand at this point. And then, secondly, just on stock-based compensation, pretty mundane topic I realize, but it is — I think in the quarter, it was about $700 million.

Market Performance and Future Outlook

GAAP gross margin of 64.8% for the second quarter was up 600 basis points from a year earlier, reflecting the absence of certain Mellanox acquisition-related costs. GAAP gross margins was up 70 basis points sequentially. Q2 GAAP EPS was $0.94, up 276% from a year earlier.

NVDA Data Center Revenue

I guess, Colette, I heard in your script that you had talked about maybe a new way of commenting on or reporting hyperscaler revenue in your data center business. H-100 ramp is different than forex broker listing the A100 ramp in several ways. The first is that the TCO, the cost benefits, the operational cost benefits because of the energy savings because every data center is now Power Limited.

Get this delivered to your inbox, and more info about our products and services. Nvidia’s automotive business remains a small part of its sales, even as rival chipmakers invest heavily in the hope that it becomes a multibillion-dollar market in the next decade. Kress said customers are using the chips for tasks such as understanding human speech and crunching data to offer customer recommendations.

We are further expanding our AI software and services offerings with NVIDIA and Bio Nemo large language model services, which are both entering early access this month. These enable developers to easily adopt large language models and deploy customized AI applications for content generation, tech summarization, chatbox, co-development, protein structure and biomolecular property predictions. Nvidia said automotive sales were $135 million, which was up 8% annually, but down 11% from the previous quarter. Nvidia said the sequential decline occurred because automakers had other supply constraints but that self-driving programs using its processors continue to ramp up. Nvidia stock has been on a big run, with shares up more than 124% year to date. The company has had more demand than it can fill, especially for its hard-to-find GeForce graphics cards that are popular with gamers.

One is called deep recommender systems, which is quite essential now to the best content or item or product to recommend to somebody who’s using a device that is like a selfie or interacting with a computer just using voice. You need to really understand the nature, the context of the person making the request and make the appropriate recommendation to them. Now, during the quarter, sell-through in Q3 three was relatively solid. We’ve indicated that although China lockdowns continue to channel — excuse me, challenge our overall China business. Home improvement retailer, Lowe’s is using it to help design, build and operate digital twins for their stores.