Nvidia reports Q3 revenue up 94% YoY to $35.1B, vs. $33.2B est., Data Center revenue up 112% YoY to $30.8B, vs. $29B est., and forecasts Q4 revenue above est.

Nvidia (NVDA) reported its Q3 earnings after the bell on Wednesday, beating analysts' expectations on the top and bottom lines …

Yahoo Finance 2024-11-21 Daniel Howley

Context & Ripple Effects

Nvidia's revenue mix had already shifted sharply toward data centers: its Q3 2023 Data Center revenue reached $14.51B after growing 279% year over year, following a Q4 report in which Data Center sales rose 409%.

This Q3 result extends that arc at a much larger base. Data Center revenue of $30.8B accounts for most of Nvidia's reported $35.1B quarterly revenue, while its above-estimate Q4 outlook indicates that the demand signal had not yet rolled over.

First-order effects

Nvidia exceeded revenue expectations by $1.9B, with Data Center revenue exceeding its estimate by $1.8B; the segment is the immediate driver of the quarter's outperformance.
The above-estimate Q4 forecast raises the near-term revenue bar for Nvidia and reinforces data-center demand as its central operating variable.

Second-order effects

Customers building AI infrastructure receive a fresh signal that Nvidia's data-center platform remains heavily purchased, increasing the pressure on competing compute vendors to demonstrate comparable demand and delivery.
The scale of Data Center sales keeps adjacent AI-infrastructure demand tied closely to Nvidia's deployment cycle, from compute capacity to the facilities needed to run it.

Third-order effects

If Data Center continues to supply the overwhelming share of Nvidia's growth, AI infrastructure becomes more concentrated around the suppliers that can turn advanced compute into deployable systems at scale.
The sequence from Nvidia's 2023 Q3 data-center surge to this quarter suggests that AI spending is becoming a recurring data-center budget category rather than a one-quarter product cycle, though the durability of that pattern depends on customer deployment and utilization.

The trend: AI investment is consolidating around data-center compute platforms, making infrastructure availability and system-scale execution increasingly consequential across the technology stack.

Discussion

@carnage4life Dare Obasanjo on threads
Nvidia revenue jumped 94% year over year which is impressive enough that investors agree that it justifies the company's current $3.6 trillion valuation. The company's guidance for future revenue was also better than expected as Jensen Huang proclaimed “The age of AI is in full …
@jimcramer Jim Cramer on x
trying to get into the heads of the Nvidia sellers. Are they trying to sell at $141 because they think it is going to $137? What's their plan? I would actually listen to what they have to say. But i am old fashioned
@jimcramer Jim Cramer on x
I love these Nvidia Quick Draw McGraws who don't even know what the numbers are or what they mean and are selling anyway. They sold at $125, $120, $115, $110 and $100 last time. Good riddance!!!!
@zerohedge @zerohedge on x
*NVIDIA SAYS HOPPER DEMAND, BLACKWELL ANTICIPATION ‘INCREDIBLE’ Need more adjectives for insiders to keep selling stonk
@mikealfred Mike Alfred on x
In the long run, the only guaranteed winners in the global AI arms race are power companies, data center operators, and Nvidia. The hyperscalers and everyone else face the existential risk of terminal decline if they fail to adapt.
@garyblack00 Gary Black on x
$NVDA (-3% AH) guidance just met 4Q revenue expectations at $37.5B +/- 2% (WS $37.1B est). Blackwell shipping a bit later than expected. 3Q Actual: - Revs $35.1B vs $33.3B est - EPS $.81 vs $.74 est - Gross margin 75.0% vs 75.0% est 4Q guide: - Revs $37.5B vs $37.1B est -
@beth_kindig Beth Kindig on x
Nvidia's $NVDA data center revenue grew 112% YoY to $30.77 billion, beating estimates by nearly $2 billion. Sequentially, data center revenue increased by $4.5 billion. [image]
@scutty David Scutt on x
Nvidia does the usual thing by exceeding its prior revenue guidance by ~$2b, but guidance for next quarter looks skinny relative to what markets have come to expect. Previously, that's also been ~$2b more than consensus. Not this time $NVDA
@keithmccullough Keith McCullough on x
When the CEO gets on TV and calls his revenues “insane”, they better beat, by a lot $NVDA [image]
@beth_kindig Beth Kindig on x
Nvidia's $NVDA data center revenue surprised by nearly $2 billion in the third quarter, marking the sixth quarter in a row that data center revenue beat estimates by more than $1 billion. [image]
@yahoofinance @yahoofinance on x
$NVDA beats Q3 expectations on top and bottom line, offers better than anticipated Q4 outlook https://finance.yahoo.com/... 💵 Revenue: $35.08B vs $33.2B expected 💲 Adjusted EPS: $0.81 vs $0.74 expected 💾 Data center revenue: $30.8B vs $29B expected [image]
@beth_kindig Beth Kindig on x
Nvidia $NVDA reported $35.1B in revenue in Q3, rising 93.6% YoY and beating estimates by nearly $2B. Nvidia guided for FQ4 revenue of $37.5B, +/-2%, slightly ahead of estimates for $37B. [image]
@wildebees.bsky.social Wessel van Rensburg on bluesky
The reason he mentions o1? Because its based on the idea that AI models will give better answers if you give them more time and computing power to “think” through questions. Specifically, it adds more compute to the AI inference phase. Nvidia's chips are designed for pretraini…
r/artificial r on reddit
One-Minute Daily AI News 11/20/2024

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