Nvidia reports Q3 revenue up 206% YoY to $18.12B, vs. $16.18B est., Data Center revenue up 279% YoY to $14.51B, and net income up 1,259% YoY to $9.2B
- Nvidia's results surpassed analysts' projections for revenue and income in the fiscal fourth quarter.
CNBCJordan Novet
Context & Ripple Effects
This quarter marks a sharp step-up from Nvidia's earlier data-center scale: in 2018, the segment generated $760M in quarterly revenue, versus $14.51B here. The magnitude and concentration of the current result make data-center demand the central lens for Nvidia's financial trajectory.
The momentum continued into the following quarter, when Nvidia reported Q4 revenue of $22.1B and data-center revenue of $18.4B. That follow-through matters because it turns this report from a single earnings beat into evidence of a rapidly expanding compute buildout.
First-order effects
Nvidia materially exceeded the stated revenue estimate while data-center revenue accounted for most of its quarterly sales, immediately strengthening the segment's importance to the company’s earnings profile.
The 1,259% increase in net income shows that the revenue surge was translating into sharply higher profit, not merely higher volume.
Second-order effects
Customers building data-center capacity face a stronger signal that accelerated-compute spending is becoming a larger share of infrastructure budgets, reinforcing demand through Nvidia’s supply chain.
The subsequent further acceleration in Q4 data-center sales raises the competitive bar for alternative compute providers: matching Nvidia increasingly requires both capable products and the capacity to serve fast-growing deployments.
Third-order effects
If this pattern persists, AI infrastructure spending could become more concentrated around the vendors able to convert data-center demand into both supply availability and high-margin revenue.
The report is an early marker of a compute-finance cycle in which earnings expectations across the infrastructure stack become tied more closely to sustained AI-capex demand rather than traditional data-center refreshes.
The trend: This is a data point in the AI infrastructure supercycle, where data-center compute demand is reshaping revenue and profit pools across the technology supply chain.
I still find it amazing there were $NVDA doubters (conspiracy theorists). But, its earnings today should solidify that growth is believable and sustainable. As long as we are in an AI training demand cycle, @Nvidia remains dominant. Once the compute cycle moves to inference,...
Strong FQ4 guide from $NVDA (~$20B vs. a $17.8B consensus), even as they guide for Chinese sales to drop significantly Q/Q. CFO commentary: “Our sales to China and other affected destinations, derived from products that are now subject to licensing requirements, have... [image]
CFO Colette Kress say's guidance for Jan would have been higher if not for the China regulation headwind. This takeaway was expected when they mentioned the big step down this quarter in China.
Nvidia's year-on-year operating income from Aug-Oct was $11.5 billion—more than 6 times higher than the same quarter a year ago. Company is doing well during the AI boom, you might say. (Gaming revenue is also up) [image]
Jensen says “absolutely believes datacenter can grow through 2025” believes that is in part because of supply constraints easing in the months to come along with a growth into enterprise with off the shelf AI and the systematic shift to investment in AI.
“Nvidia earnings crush Wall St. estimates again.” Guided next qtr. higher too - & I couldn't be happier as I know NVDA is establishing comparisons inflated by double-ordering, hoarding & chip speculating that won't be matched next year. Another boom & bust https://finance.yahoo.c…
Nvidia says growth elsewhere will outweigh drop in China sales. Same story for pretty much every other company in the semi industry. Sound economic statecraft means that you can achieve your national security goals w/o hindering competitiveness. https://www.ft.com/... via @ft
Nvidia added that any lost sales to China “will be more than offset” by strong growth in its other markets. The company still managed to project $20 billion in revenue for the January quarter, up a whopping 231% from the same period last year https://www.wsj.com/...
Nvidia CFO, on export restrictions to China and some other hot spots: “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.”
The fact that NVIDIA is still projecting $2B more revenue ($20B vs $18B) than the street average expectation WITH these new China restrictions is jaw dropping. How much more revenue COULD have NVIDIA been able to drive without those export controls in place??