• 20
  • 4
  • Favorite

Nvidia Fourth-Quarter Revenue Estimate Fails to Impress Wall Street

Reuters05:21

[Live Playback: Nvidia Earnings Conference Call]

Nvidia forecast fourth-quarter revenue slightly above estimates on Wednesday, but still failed to meet lofty expectations of some investors who have made it the world's most valuable firm.

Shares of the Santa Clara, California-based company fell roughly 2% in extended trading. They had closed down 0.8% on Wednesday.

The company forecast revenue of $37.5 billion, plus or minus 2% for the fourth quarter, compared with analysts' average estimate of $37.09 billion according to data compiled by LSEG.

“The age of AI is in full steam, propelling a global shift to NVIDIA computing,” Nvidia CEO Jensen Huang said. “Demand for Hopper and anticipation for Blackwell - in full production - are incredible as foundation model makers scale pretraining, post-training and inference," he said, referring to two high-performing AI chips.

Expectations ran high ahead of the results, with Nvidia shares up more than 20% over the last two months. The stock has nearly quadrupled so far this year and is up more than nine-fold over the last two years.

While demand is soaring for the company's chips that make up the brains of complex generative AI systems, supply-chain snags have made it harder for Nvidia to report the big beats on revenue that have helped make it a Wall Street darling.

One of the bottlenecks for its chip supply has been the limited capacity for advanced manufacturing techniques at the company's manufacturing partner TSMC.

The company recorded third-quarter adjusted earnings of 81 cents per share, compared to estimates of 75 cents per share.

Sales in the data-center segment, which accounts for a majority of Nvidia's revenue, grew 112% to $30.77 billion in the quarter ended Oct. 27. The segment had recorded growth of 154% in the prior quarter.

Nvidia's sales are boosted by cloud companies' continued spending on its chips, as they expand data centers capable of handling generative AI's complex processing needs.

The company said it had fixed a design flaw with its Blackwell chips by changing the blueprints used by TSMC to manufacture it.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment4

  • Miketee74
    ·08:38
    Haha...some of these analysis or biz reportor are focusing on negative side instead of the positive. It is never been easy for such a big corporate to continue to have good performance indicator that above the expectation. If we look at short term (Q4), I would say that it may slow down but still able to hit the target as the Blackwell already start to be distributed. New government is yet to take over the White House, thus existing regulations is still remain in force.  For Long Term, so far Nvidia is ahead of others in the industry. Those companies may produce some products that could compete with Blackwell, but they can't stop Nvidia to have another new product while waiting for others.  No doubt the new government may impose certain trading regulation, but as well as they nee
    Reply
    Report
    Fold Replies
    • a4xrbj1
      It’s more about guidance not good enough and is becoming more and more clear that the users of NVIDIA chips aren’t finding enough “gold” to justify the price for investment. This will create pressure on NVIDIA prices in the future and worry about profit margin.
      13:56
      Reply
      Report
  • Guavaxf30
    ·07:30
    Same old same old. This happens after the previous good earnings report. It will trade down and then flat for a few days.
    Reply
    Report
    Fold Replies
    • Guavaxf30
      Wow. Dan Ives called Tesla the bet of the ages after Trump's election win staged a rally. I think the real bet for the ages was early this morning in the after market when the traders sold off NVDA down to as low as 139 plus. Now, even before the market opens, NVDA has risen to almost last night's closing price.
      20:19
      Reply
      Report
  • nywles
    ·06:05
    Reply
    Report
    Fold Replies
    • Guavaxf30Replying toa4xrbj1
      True. And this was what happens the previous wuarterly report too. Which may mean that after a couple of days, it may resume the uphill run?
      14:42
      Reply
      Report
    • a4xrbj1
      Very simple, NVIDIA went up 20% leading to Q3 earnings, it’s all baked in. Concerns are about the future earnings and profit margin.
      13:57
      Reply
      Report
    • Kristina_

      same question? so what’s ur opinion?? thx for ur sharing.

      10:24
      Reply
      Report
    View more 1 comments
  • thanh092
    ·05:34
    Great article, would you like to share it?
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial