Nvidia Q3 disappoints, shares plummet
Nvidia (NVDA) reported a big miss on both the top and bottom lines for Q3
after market close on Thursday.
The chipmaker earned $1.84 per share which was weaker than the $1.92 per
share that was anticipated, according to analysts polled by Bloomberg.
This is Nvidia’s first EPS miss in 13 quarters. Shares tanked 13% in
after-hours trade on Thursday. Revenue also came in worse than expected at
$3.18 billion versus consensus of $3.24 billion.
Investors and analysts have been paying close attention to
graphics-processing unit (GPU) sales in Q3, as this was the first earnings
report since the company launched GPUs. GPU business revenue came in at $2.77
billion, which was up 25% year over year.
“Our introduction of Turing GPUs is a giant leap for computer graphics and
AI, bringing the magic of real-time ray tracing to games and the biggest
generational performance improvements we have ever delivered,” CEO Jensen
Huang said in a statement.
Nvidia shares have been underperforming the broad market in the past year,
falling nearly 5% while the S&P 500 (^GSPC) has risen 5% in the same time
period. The chip giant is currently in a bear market after hitting an
all-time high in early October.