Due to significant increase in data center AI processor sales, Nvidia (NVDA) beat Wall Street's fiscal third quarter estimates late Tuesday. It also indicated higher than current quarter expectations. However, NVDA declined in extended trade.
The Santa Clara, Calif.-based corporation earned $4.02 per share on $18.12 billion in revenue in the quarter ended Oct. 29. FactSet analysts predicted $3.37 per share and $16.19 billion in sales for Nvidia. Nvidia revenue rose 206% and profitability 593% year-over-year.
Due to strong demand for AI chips, Nvidia's Q3 revenue and profitability grew triple-digits for the second straight quarter.
The third quarter saw Nvidia's data center sales rise 279% to a record $14.51 billion. Data center revenues rose 41% from Q2.
Nvidia expects quarterly revenues of $20 billion, up 231% from last year. Analysts predicted $17.96 billion in fiscal fourth-quarter sales for January.
NVDA fell 1% to 494.27 after-hours. NVDA closed Tuesday at 499.44, down 0.9%.
According to Chief Executive Jensen Huang, the company's rapid expansion is a reflection of the industry-wide shift in platform focus from general-purpose to accelerated computing and generative AI.
"Large language model startups, consumer internet companies and global cloud service providers were the first movers, and the next waves are starting to build," according to him.
"Nations and regional CSPs (cloud service providers) are investing in AI clouds to serve local demand, enterprise software companies are adding AI copilots and assistants to their platforms, and enterprises are creating custom AI to automate the world's largest industries."