NVIDIA Reports Strong Q3 2023 Results

NVIDIA (NASDAQ: NVDA) has announced its financial results for the third quarter ended October 29, 2023. The company reported revenue of $18.12 billion, a 206% increase from the same period last year and a 34% increase from the previous quarter. GAAP earnings per diluted share for the quarter were $3.71, up over 12 times from a year ago and up 50% from the previous quarter. Non-GAAP earnings per diluted share were $4.02, up nearly 6 times from a year ago and up 49% from the previous quarter.

Jensen Huang, founder and CEO of NVIDIA, attributed the strong growth to the industry's transition to accelerated computing and generative AI. He highlighted the adoption of NVIDIA's GPUs, CPUs, networking, AI foundry services, and NVIDIA AI Enterprise software as key drivers of growth. Huang expressed optimism about the future of generative AI, stating that the era is taking off.

NVIDIA also announced that it will pay a quarterly cash dividend of $0.04 per share on December 28, 2023, to all shareholders of record on December 6, 2023.

Outlook for Q4 2024

NVIDIA provided its outlook for the fourth quarter of fiscal 2024:

  • Revenue is expected to be $20.00 billion, plus or minus 2%.
  • GAAP and non-GAAP gross margins are expected to be 74.5% and 75.5%, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $3.17 billion and $2.20 billion, respectively.
  • GAAP and non-GAAP other income and expense are expected to be an income of approximately $200 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 15.0%, plus or minus 1%, excluding any discrete items.

Highlights

NVIDIA achieved significant progress in various areas since its previous earnings announcement:

Data Center

  • Recorded third-quarter revenue of $14.51 billion, a 41% increase from the previous quarter and a 279% increase from a year ago.
  • Announced the NVIDIA HGX H200 with the new NVIDIA H200 Tensor Core GPU, featuring HBM3e memory.
  • Introduced an AI foundry service to accelerate the development of custom generative AI applications.
  • Announced partnerships with leading companies, including Microsoft Azure, Google Cloud Platform, and Oracle Cloud Infrastructure.
  • Achieved record-setting performance in MLPerf benchmarks for inference and training.

Gaming

  • Generated third-quarter revenue of $2.86 billion, a 15% increase from the previous quarter and an 81% increase from a year ago.
  • Launched DLSS 3.5 Ray Reconstruction and released TensorRT-LLM for Windows to enhance gaming experiences.
  • Added numerous DLSS and Reflex games, bringing the total number of RTX games and applications to over 475.
  • Expanded the GeForce NOW library to include popular games like Alan Wake 2, Baldur's Gate 3, and Cyberpunk 2077: Phantom Liberty.

Professional Visualization

  • Reported third-quarter revenue of $416 million, a 10% increase from the previous quarter and a 108% increase from a year ago.
  • Announced collaboration with Mercedes-Benz to utilize NVIDIA Omniverse for digital twin creation.
  • Introduced a new line of desktop workstations with NVIDIA RTX 6000 Ada Generation GPUs.

Automotive

  • Generated third-quarter revenue of $261 million, a 3% increase from the previous quarter and a 4% increase from a year ago.
  • Expanded collaboration with Foxconn to develop next-generation electric vehicles using NVIDIA DRIVE Hyperion platform and NVIDIA DRIVE Thor system-on-a-chip.

For more detailed information on NVIDIA's financial results and commentary, please visit https://investor.nvidia.com.