The graphics card giant is benefiting from the boom around artificial intelligence, even if clouds seem to appear.
In the middle of the week, NVIDIA logically published its financial results for the third quarter of its fiscal year 2024. A quarter which ended on October 29.
Up 206% year-on-year, the group’s quarterly revenue reached records for NVIDIA which, of course, can count on its GPU department and the gaming field to once again achieve its excellent results.
A profit up 1,259%!
For several years now, NVIDIA has, however, been able to count on another locomotive, artificial intelligence. It is still the group’s GPUs that are used, but for different purposes.
For the third quarter, it’s very simple, NVIDIA announces an income of 18.12 billion dollars for a net profit of 9.24 billion dollars. If the first increases by 206%, for profit it is simply 1,259% better over the same period a year ago. Not to spoil anything, NVIDIA announces a gross margin of 74%, up 20.4% year-on-year.
Obviously delighted by the performance of his group, Jensen Huang, founder and CEO of NVIDIA, specifies: “ Our strong growth reflects the industry as a whole’s transition from general-purpose computing to accelerated computing and generative AI “.
A stock at half mast
However, this does not seem to be enough for investors who, rather than making NVIDIA stock progress further, pushed it down in the days that followed: from 505 dollars on Monday, November 20, it rose to 492 .7 dollars on the morning of November 21 to settle at $477 at the end of the week, a drop of more than 5% in a few days.
Several analysts are already talking about “ end of the stock market explosion » and it is indeed important to know that these exceptional results of the group had already been anticipated by investors. For months, NVIDIA shares have been at the top of the Nasdaq and it is not surprising to see things returning to a bit of a “normal course”… especially since clouds are looming on the horizon.
For several weeks, we have known that the US government was going to block exports of the most powerful NVIDIA GPUs to markets like China. A ban that came into force recently. A bit alone in the market for GPUs used in AI, NVIDIA also has to deal with the emergence of notable competitors: Microsoft, for example, has launched its own chips.
All in all, NVIDIA’s fourth fiscal quarter promises to be followed while Jensen Huang was naturally very confident. He estimates revenues of around $20 billion over this period with a gross margin that would increase further, albeit very slightly to 74.5%.
In the journey of a gamer or creator, the choice of a graphics card is not one that should be taken lightly. An essential component of a machine designed for gaming or production, the graphics card plays an increasingly important role. Let’s try to guide your choices during this period when all models are quite easily found.
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Source : Tom’s Hardware
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