Nvidia
Nvidia reports shortly and presents: the undisputed ruler of the artificial intelligence era!
Financial results – Q3 2024: revenue: $18.1 billion – 206% growth compared to the same quarter last year, beating estimates of approximately $16.2 billion.
Net income: $9.24 billion – compared to only $680 million last year.
Earnings per share: $4.02 – above analysts' estimates of $3.83.
Gross profit margins: in the data center segment climbed to 78%, while gaming saw a moderate increase to 59%.
Performance by segments:
Data centers: $14.5 billion – staggering growth of 235% thanks to demand for H100 processors and a massive shift to advanced computing.
Gaming: $2.5 billion – 12% increase with market recovery.
Automotive: moderate growth of 72%.
Challenges ahead:
1) China's impact: US regulatory restrictions require export licenses for certain Nvidia products, directly affecting the company's revenue in the country.
Interesting fact: China accounts for 20%-25% of data center segment revenue, and Nvidia expects a certain decline in sales in China next quarter.
2) The stock after the report: despite amazing results, the stock is sluggish at -2% in after-hours.
The concern: can high demand be sustained long-term, and what will happen with supply restrictions to China?
Outlook:
Q4 2024 guidance: expected revenue of $19.6-20.4 billion, with gross profit margins of approximately 75%.
Note this: the next generation of processors (Blackwell) is expected to be released in 2025 and leverage the company's advanced computing capabilities.
In addition, Nvidia announced that it delivered 13,000 samples of its Blackwell architecture to customers in Q3.
Since the beginning of the year, Nvidia's stock has surged by approximately 200%, and the company continues to position itself as a leading player in the artificial intelligence era.
Nvidia is not just a technology company; it is a symbol of global change that dictates our future.
Let's end with a fun fact: an investment of $100 in Nvidia a decade ago would yield approximately $297,000 today.