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NVIDIA Corporation (NVDA - Free Report) announced impressive financial results for the third quarter of fiscal 2024, wherein both revenues and earnings surpassed the Zacks Consensus Estimate. The graphic chip maker’s revenues almost tripled while non-GAAP EPS more than quintupled during the reported quarter.
The robust growth in the top line was mainly driven by record sales in the datacenter end market. NVIDIA’s Datacenter end market benefited from increased traction in its HGX platform and Infi-Band solution and the improvement in its Cloud Service Provider (CSP) customer base.
The CSP customer base experienced increased interest both in Hyperscale and Graphics Processing Unit (GPU)-specialized CSPs globally. The company reported revenues from Datacenter of $14.51 billion for the third quarter, while our estimate for the same was pegged at $12.5 billion.
Besides the CSP customers, the segment also experienced an increased demand for its recently released Grace Hopper Superchips for next-generation Artificial Intelligence (AI)-based supercomputing needs among its European customers.
Even though AI has existed for years, the rapid rise of OpenAI’s ChatGPT has captivated the world, showcasing the potential of generative AI to enhance human abilities.
The adoption of ChatGPT among enterprises showcased the practicality of generative AI technology across diverse sectors, such as marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
However, the expansive capabilities of generative AI demand extensive knowledge for content creation and significant computational resources.
Consequently, enterprises seeking to develop AI applications will need to enhance their network infrastructure.
NVIDIA's next-generation chips, renowned for their high computational prowess, stand out as the preferred choice for enterprises. These GPUs are already integral to AI models, enabling NVDA to broaden its presence in emerging sectors like automotive, healthcare and manufacturing.
The advent of generative AI is poised to drive substantial demand for advanced and high-powered chips. The company anticipates its fourth-quarter fiscal 2024 revenues to reach $20 billion (+/- 2%) from $6.05 billion in the previous year, predominantly fueled by escalating investments in AI within the datacenter segment.
Zacks Rank and Other Stocks to Consider
Currently, NVDA sports a Zacks Rank #1 (Strong Buy). Shares of NVDA have declined 238.4% year to date.
The Zacks Consensus Estimate for NetEase's fourth-quarter 2023 earnings has been revised upward by 10 cents to $1.73 per share in the past 60 days. For fiscal 2023, earnings estimates have increased by 42 cents to $6.96 per share in the past 60 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 16.63%. Shares of NTES have gained 60.8% year to date.
The Zacks Consensus Estimate for Dropbox's fourth-quarter 2023 earnings has remained unchanged for the past 90 days at 48 cents per share. For fiscal 2023, earnings estimates have been revised 7 cents upward to $1.96 per share in the past 30 days.
DBX’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.14%. Shares of DBX have climbed 25.8% year to date.
The Zacks Consensus Estimate for Model N’s first-quarter fiscal 2024 earnings has remained unchanged in the past 30 days. For fiscal 2023, earnings estimates have increased by 2 cents to $1.14 per share in the past 90 days.
MODN’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.78%. Shares of MODN have declined 41.5% year to date.
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NVIDIA (NVDA) Q3 Datacenter Sales Soar on Cloud & GenAI Boom
NVIDIA Corporation (NVDA - Free Report) announced impressive financial results for the third quarter of fiscal 2024, wherein both revenues and earnings surpassed the Zacks Consensus Estimate. The graphic chip maker’s revenues almost tripled while non-GAAP EPS more than quintupled during the reported quarter.
The robust growth in the top line was mainly driven by record sales in the datacenter end market. NVIDIA’s Datacenter end market benefited from increased traction in its HGX platform and Infi-Band solution and the improvement in its Cloud Service Provider (CSP) customer base.
The CSP customer base experienced increased interest both in Hyperscale and Graphics Processing Unit (GPU)-specialized CSPs globally. The company reported revenues from Datacenter of $14.51 billion for the third quarter, while our estimate for the same was pegged at $12.5 billion.
NVIDIA Corporation Price and EPS Surprise
NVIDIA Corporation price-eps-surprise | NVIDIA Corporation Quote
Besides the CSP customers, the segment also experienced an increased demand for its recently released Grace Hopper Superchips for next-generation Artificial Intelligence (AI)-based supercomputing needs among its European customers.
Even though AI has existed for years, the rapid rise of OpenAI’s ChatGPT has captivated the world, showcasing the potential of generative AI to enhance human abilities.
The adoption of ChatGPT among enterprises showcased the practicality of generative AI technology across diverse sectors, such as marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
However, the expansive capabilities of generative AI demand extensive knowledge for content creation and significant computational resources.
Consequently, enterprises seeking to develop AI applications will need to enhance their network infrastructure.
NVIDIA's next-generation chips, renowned for their high computational prowess, stand out as the preferred choice for enterprises. These GPUs are already integral to AI models, enabling NVDA to broaden its presence in emerging sectors like automotive, healthcare and manufacturing.
The advent of generative AI is poised to drive substantial demand for advanced and high-powered chips. The company anticipates its fourth-quarter fiscal 2024 revenues to reach $20 billion (+/- 2%) from $6.05 billion in the previous year, predominantly fueled by escalating investments in AI within the datacenter segment.
Zacks Rank and Other Stocks to Consider
Currently, NVDA sports a Zacks Rank #1 (Strong Buy). Shares of NVDA have declined 238.4% year to date.
Some other top-ranked stocks from the broader technology sector are NetEase (NTES - Free Report) , Dropbox (DBX - Free Report) and Model N (MODN - Free Report) , each flaunting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NetEase's fourth-quarter 2023 earnings has been revised upward by 10 cents to $1.73 per share in the past 60 days. For fiscal 2023, earnings estimates have increased by 42 cents to $6.96 per share in the past 60 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 16.63%. Shares of NTES have gained 60.8% year to date.
The Zacks Consensus Estimate for Dropbox's fourth-quarter 2023 earnings has remained unchanged for the past 90 days at 48 cents per share. For fiscal 2023, earnings estimates have been revised 7 cents upward to $1.96 per share in the past 30 days.
DBX’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.14%. Shares of DBX have climbed 25.8% year to date.
The Zacks Consensus Estimate for Model N’s first-quarter fiscal 2024 earnings has remained unchanged in the past 30 days. For fiscal 2023, earnings estimates have increased by 2 cents to $1.14 per share in the past 90 days.
MODN’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.78%. Shares of MODN have declined 41.5% year to date.