Nvidia Hits Record $18.12 Billion Revenue in Q3 2023, Unfazed by US Chip Export Ban
Summary:
Nvidia reports a record third-quarter revenue of $18.12 billion for 2023, pushing its market capitalization to $1.22 trillion following a year of robust growth. Despite a recent U.S. ban on chip exports impacting the China market, which contributes significantly to Nvidia’s data center revenue, the company remains optimistic that growth in other regions will compensate for potential losses.
Nvidia has reported a historic company revenue of $18.12 billion for the third quarter of 2023, pushing its market capitalization to a monumental $1.22 trillion. This impressive performance, exceeding market expectations, aligns with a continuous growth trajectory over the past year, which has seen the company's earnings surge by 34% since the last quarter, and a whopping 206% rise compared to Q3 2022.
The record-breaking quarter, which saw the company's stock reach an unprecedented high at $499.60 per share, may not have taken investors or shareholders by surprise. Nvidia's founder and CEO, Jensen Huang, attributes their success to the sale of AI hardware, noting the industry-wide shift from conventional to accelerated, generative AI computing, largely facilitated by Nvidia.
Huang further highlights that the "first movers" in this transition were AI start-ups, consumer internet firms, and cloud service providers, with more potential stakeholders expected to follow suit soon. This record-breaking achievement arrives amid a pivotal period for Nvidia - headquartered in Santa Clara, California - and the international chip market.
A recent partial prohibition on chip exports by the U.S. affected several countries including China - a region that contributes roughly 20-25% of Nvidia's data center revenue in recent quarters. Given that Nvidia's latest data center earnings disclosure stands at $14.51 billion, this implies that nearly $3.6 billion in Q3 earnings might be owed to the China market.
Addressing the issue, Nvidia's CFO, Collette Kress, during a call to shareholders about the Q3 earnings, acknowledged that the embargo is likely to considerably impact their Chinese business in the fourth quarter. Nonetheless, Kress was optimistic that anticipated growth in other regions would more than compensate for these potential losses.
Published At
11/22/2023 5:10:00 PM
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