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Nvidia shares fall on China export fears — even as 3Q revenue triples

Published 2023-11-21, 04:42 p/m
© Reuters.  Nvidia shares fall on China export fears — even as 3Q revenue triples
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Proactive Investors - NVIDIA Corporation (NASDAQ:NVDA) stock fell 1% in extended trading Tuesday as concern over the impact of export restrictions in China outweighed an expectations beat.

The chipmaker posted revenue of $18.12 billion, more than triple what it reported in the year-ago quarter and well above Street expectations of $16.18 billion. Adjusted earnings were $4.02 per share, compared to expectations of $3.37.

Data center revenue was $14.51 billion, up 279% year-over-year and above the consensus of $12.97.

However, the company acknowledged that restrictions on sales of its GPUs in China and other countries will have an impact in the fourth quarter.

“We expect that our sales to these destinations will decline significantly in the fourth quarter of fiscal 2024, though we believe the decline will be more than offset by strong growth in other regions,” Nvidia said in a letter to shareholders.

Nvidia guided for revenue of $20 billion in the period, also more than triple what it produced in the year-ago quarter.

Notably, Nvidia’s stock is up more than 241% this year, driven by surging demand for its artificial intelligence chips. A sizeable expectations beat was likely already priced in.

During the period, Nvidia unveiled its GH200 GPU, which has 1.4x the memory bandwidth and 1.8x the memory capacity of the H100 chip, which OpenAI used to train CPT-4. The chip is expected to debut in 2024.

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