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Nvidia Third-Quarter Earnings Live Blog – TheStreet

Summary

Following its latest run-up, Nvidia’s stock is up more than 125% in 2021, gains that leave the GPU giant sporting a $740 billion market cap.

Investors are clearly expecting Nvidia to once more post strong numbers when it reports after the bell on Wednesday. 

Among analysts polled by FactSet, the consensus for Nvidia to report October quarter (fiscal third quarter) revenue of $6.82 billion (up 44% annually) and non-GAAP EPS of $1.11 (up 52%).

Nvidia typicall…….

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Following its latest run-up, Nvidia’s stock is up more than 125% in 2021, gains that leave the GPU giant sporting a $740 billion market cap.

Investors are clearly expecting Nvidia to once more post strong numbers when it reports after the bell on Wednesday. 

Among analysts polled by FactSet, the consensus for Nvidia to report October quarter (fiscal third quarter) revenue of $6.82 billion (up 44% annually) and non-GAAP EPS of $1.11 (up 52%).

Nvidia typically provides quarterly sales guidance in its reports. For the January quarter, Nvidia’s revenue consensus stands at $6.89 billion (up 38% annually).

Eric Jhonsa, Real Money’s tech columnist, will be live-blogging Nvidia’s report, which will be posted at 4:20 p.m. Eastern Time, along with an earnings call scheduled for 5 p.m. 

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6:15 PM ET: Nvidia’s call has ended. Though already up more than 120% YTD going into earnings, Nvidia’s stock has risen another 4.7% after-hours to $306.44 after the company topped FQ3 estimates and issued FQ4 sales guidance that was more than $500M above consensus at its midpoint.

Gaming product sales rose 42% Y/Y thanks to both strong desktop and notebook GPU demand, while Data Center product sales (boosted by huge server GPU purchases by hyperscalers) rose 55%. Meanwhile, CMP mining GPU sales fell sharply Q/Q and are forecast to be negligible in FQ4.

On Nvidia’s call, Jensen Huang repeatedly talked up the long-term opportunity he sees for Nvidia’s Omniverse 3D design/collaboration platform, and in particular for Omniverse’s recently-announced digital avatar solution. He also suggested Nvidia, which is making giant long-term purchase commitments with suppliers, will see its supply situation improve meaningfully by the second half of 2022.

Thanks for joining us.

6:07 PM ET: Huang makes some closing remarks. He recaps Nvidia’s FQ3 performance across various end-markets. Says the company is working hard to increase supply in order to catch up with demand. Declares GTC highlighted Nvidia’s “full-stack expertise” in a number of areas, while also showing how new software opportunities are opening up for it. Goes over Omniverse’s capabilities once again, while declaring that they’re just “the tip of the iceberg.”

6:04 PM ET: A question about whether Nvidia is seeing some gross margin headwinds.

Kress: Our gross margin right now is largely stable. Product mix remains the largest driver for margin growth. Strong demand for high-end GPUs supporting AI workloads is a margin tailwind. But higher costs can be a headwind.

6:02 PM ET: A question about Nvidia’s supply agreements. And one about where Nvidia thinks we are in the AI adoption cycle.

Kress: We’re procuring supply not only for next year, but for the long-term. We plan to continue doing this.

Huang: Every single server will be GPU-accelerated someday. Today, that percentage is less than 10%. A lot of workloads still only run on CPUs. We’ve revolutionized a number of fields. A lot of the work …….

Source: https://www.thestreet.com/live-coverage/earnings/nvidia-third-quarter-earnings-live-blog-2021