Nvidia Crushes Q3 Expectations Despite Looming China Export Hit
Nvidia reports massive 206% year-over-year revenue growth for the third quarter, easily beating Wall Street estimates. However, the chipmaker warns that upcoming U.S. export restrictions will significantly impact sales to China.
Nvidia easily surpasses Wall Street expectations for its fiscal third quarter as the AI boom drives massive demand for its chips. The company reports adjusted earnings of $4.02 per share on $18.12 billion in revenue, which represents a staggering 206% increase compared to the same period last year. Data center revenue alone totals $14.51 billion, fueled heavily by cloud infrastructure providers and businesses renting out GPU computing power.
Despite these record-breaking numbers, Nvidia shares dip slightly in extended trading as the company flags upcoming headwinds from U.S. export restrictions. Chief Financial Officer Colette Kress states that sales to China and other affected destinations will decline significantly in the fourth quarter. Nvidia is actively working with clients in these regions to secure government licenses and is developing new compliant data center products, though these new chips will not provide a meaningful revenue boost in the short term.
Looking ahead, Nvidia projects $20 billion in revenue for the fiscal fourth quarter, implying an incredible 231% growth rate that more than offsets the expected losses from Chinese restrictions. The company continues to innovate during this explosive growth period, recently announcing the new GH200 GPU. This next-generation chip features more memory than the highly sought-after H100 and includes an additional Arm processor to handle complex AI workloads.