Michelle ThompsonDue to new US export license rules for China and certain other countries, the company anticipates a fall in sales in the fourth quarter.
Nvidia’s financial results statement, which was announced on Tuesday, states that the company’s increasing demand for technology necessary for artificial intelligence (AI) jobs caused its revenue to triple to a record high during the third quarter.
For the quarter that ended on October 29, the US-based chip manufacturing behemoth reported record sales of $18.12 billion.
The sum is up 34% from the previous quarter and 206% more than it was during the same time last year.
In addition, the business reported record-breaking Data Center revenue of $14.51 billion, up 279 percent from a year ago and 41% from the second quarter.
Additionally, gaming revenue increased by 15% from the previous quarter and by 81% from a year ago.
Founder and CEO Jensen Huang said in the announcement, “Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI.”
The initial movers were big language model startups, consumer internet companies, and international cloud service providers; now, the subsequent waves are beginning to form. Enterprise software companies are integrating AI copilots and assistants to their platforms, nations and regional CSPs are investing in AI clouds to meet local demand, and businesses are developing custom AI to automate the largest sectors in the world,” he continued.
However, the business stated that it anticipates a drop in sales in the fourth quarter as a result of the US government’s announcement of new and updated license requirements for exports to China as well as a few other nations, such as Vietnam, Saudi Arabia, and the United Arab Emirates.
“We expect that our sales to these destinations will decline significantly in the fourth quarter of fiscal 2024, though we believe the decline will be more than offset by strong growth in other regions,” it stated in an additional statement.
Nvidia’s stock price dropped 0.88% to $495.05 per share in after-hours trading on the Nasdaq due to the drop in projected sales. The company had closed Tuesday at $499.44 a share.
