Nvidia Shares Pump’n’Dump After Earnings Miss, Revenue Beat, Outlook Steady

After Micron’s weaker market outlook dragged down semis (and tech) broadly on the day, Nvidia’s earnings after hours might provide some energy for a rebound in the broad market as it beat top-line expectations and its outlook was within the margin of error for expectations.

• Q3 Revenue was $5.93 billion, down 17% from a year ago and down 12% from the previous quarter, but above expectations of $5.79 billion

• Q3 Adjusted EPS was 58c, down from $1.17 a year ago, below expectations of 70c.

Weak demand for gaming chips pressured Nvidia’s September-quarter results.

• Data-center sales rose 31% to $3.83 billion, while gaming sales dropped 51% to $1.57 billion from a year ago.

Analysts had forecast $1.42 billion in gaming sales and $3.72 billion in data-center sales.

And Nvidia’s outlook was steady with Q4 revenues expected to be around $6.00 billion (plus or minus 2% – $5.88 billion to $6.12 billion) relative to expectations of $6.09 billion.

“We are quickly adapting to the macro environment, correcting inventory levels and paving the way for new products,” said Jensen Huang, founder and CEO of NVIDIA.

“The ramp of our new platforms – Ada Lovelace RTX graphics, Hopper AI computing, BlueField and Quantum networking, Orin for autonomous vehicles and robotics, and Omniverse – is off to a great start and forms the foundation of our next phase of growth.”

“NVIDIA’s pioneering work in accelerated computing is more vital than ever. Limited by physics, general purpose computing has slowed to a crawl, just as AI demands more computing. Accelerated computing lets companies achieve orders-of-magnitude increases in productivity while saving money and the environment,” he said.

NVDA shares are still down on the day (after Micron’s pain-induced selloff during the day), having jumped 3-4% on the initial top-line beat and steady outlook, but are back at the lows of the day now…

The company remains caught up in the worsening standoff between China and the US. Washington is increasingly trying to cut off the Asian country from advanced chip technology, threatening Nvidia’s access to that market.