The artificial intelligence company that provides solutions for gaming platforms, Nvidia, delivered better-than-expected results for fiscal Q3 2021, characterized by record revenue.
Earnings and revenue were largely driven by growth in the Gaming, Data Center, and Professional Visualization market and topped consensus estimates.
On Thursday, Nvidia (NASDAQ:NVDA) shares jumped 8.3% to close at $316.75. The Dow Jones Industrial Average was down 0.2%, while the S&P 500 was up 0.3%. It was a record close for Nvidia, bringing its market value to about $791.9 billion.
Raymond James Analyst wrote: “In the near-term, NVDA’s revenue has only been constrained by supply and increased supply availability. And increasing supply is boosting revenue.”
Caso wrote that the graphics card maker crushed analyst expectations for its fiscal third quarter. He raised his price target from $225 to $365 and maintained a Strong Buy rating following Nvidia’s earnings release on Wednesday.
RESULTS & OUTLOOK
Nvidia delivered a record quarterly revenue of $7.10 billion, up 50% year-over-year exceeding consensus estimates of $6.83 billion. The Gaming unit posted record revenue of $3.22 billion, while Data Center revenue grew to $2.94 billion, up 42% and 55%, respectively.
Moreover, the Professional Visualization segment posted revenue of $577 million, and the Automotive segment delivered a revenue increase of 8% year-over-year to $135 million. During the quarter, Nvidia paid cash dividends amounting to $100 million and expects revenue of $7.40 billion, plus minus 2% for Q4.
It also expects non-GAAP gross margins of 67%. In recent weeks, the stock had a sky-high bar set by the company’s surging valuation. Analysts and investors believe that the metaverse will provide Nvidia with a multi-billion dollar opportunity to supply chips to power virtual world graphics.
CEO Jensen Juang said the company’s data center business is benefiting from the growth of the cloud-computing market, as well as “broadening adoption” of its artificial intelligence technology “by more than 25,000 companies”.
