NVIDIA Shares Fall After Topping Q3 Estimates

Published on: 15 Nov, 2019

Nvidia (NASDAQ: NVDA) reported its third quarter financial results after the closing bell on Thursday. Nvidia topped analysts estimates, however, shares rose by 0.3% during Friday’s pre-market hours.

For the quarter, Nvidia reported earnings of USD 1.78 per share on revenue of USD 3.01 Billion. FactSet analysts surveyed earnings of USD 1.58 per share on revenue of USD 2.92 Billion.

Nvidia reported that revenue declined by 5% year-over-year, primarily due to losses in its gaming and data center revenue. Gaming revenue fell to USD 1.65 Billion at the end of the quarter compared to USD 1.80 Billion the same period a year ago. Meanwhile, data center revenue fell to USD 726 Million versus USD 792 Million a year ago.

Professional visualization reported revenues of USD 324 Million, auto revenue was USD 162 Million, and Nvidia’ OEM and other segment delivered revenues of USD 143 Million.

Despite revenue being down year-over-year, Nvidia’s revenue gained 17% sequentially due to its gaming business and demand from hyperscale customers.

“Our gaming business and demand from hyperscale customers powered Q3’s results,“ said Jensen Huang, Founder and Chief Executive Officer of NVIDIA. “The realism of computer graphics is taking a giant leap forward with NVIDIA RTX.

“This quarter, we have laid the foundation for where AI will ultimately make the greatest impact. We extended our reach beyond the cloud, to the edge, where GPU-accelerated 5G, AI and IoT will revolutionize the world’s largest industries. We see strong data center growth ahead, driven by the rise of conversational AI and inference,” concluded Huang.

Huang told analysts on the call that “Nvidia has really become a software company.”

For the fourth quarter, Nvidia is forecasting revenues to be approximately USD 2.95 Billion, plus or minus 2%. The Company is forecasting strong sequential growth is expected in Data Center, offset by a seasonal decline in GeForce notebook GPUs and SoC modules for gaming platforms.

Following Nvidia’s quarterly results, shares are now up 57.1% this year.


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Bryan Shin

Email: Bryan@financialinsiders.com


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