Stronger-than-expected Q3 earnings for Nvidia

Stronger-than-expected Q3 earnings for Nvidia

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

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