Nvidia crushed both earnings and revenue expectations
When it comes to graphic processing units (GPUs), one of the market leaders – Nvidia posted its Q3 2020 figures, beating every expectation.
In Q3, Nvidia reported an adjusted EPS of $2.91, topping the $2.57 forecasted. Also, the revenue beat the $4.41 billion consensus coming in at $4.73 billion. According to the company’s statement, these revenues set a record, increasing by 57% since last year.
Nvidia’s quarterly success was driven by the computing and networking segment, which went up 146% to $1.94 billion from last year’s figures. The graphics segment increased by 25% to $2.79 billion compared to Q3 2019.
Despite the outstanding results, Nvidia’s representatives expect that revenues generated by the data center decrease in the current quarter, given that the Chinese customers are not purchasing its networking products – Mellanox. Also, the overall revenue is forecasted to be in line with the expectations at $4.8 billion.
Now, Nvidia is waiting to close a $40 billion with SoftBank to buy ARM from it. The deal is to be completed in the first half of 2022.
Even though the quarterly figures came in stronger-than-expected, Nvidia stock price fell 3%.
Sources: cnbc.com, globenewswire.com
This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com
JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.