NVIDIA Corp. (NASDAQ: NVDA) reported its third quarter financial results after market close on Thursday. Nvidia topped earnings estimates, but missed revenue estimates, sending share plunging 15%.
For the third quarter, Nvidia reported revenue of USD 3.18 Billion, increasing 21% year over year, but missing estimates of USD 3.24 Billion. The Company reported earnings per share of USD 1.84, increasing 38% year over year and topping estimates of USD 1.71.
Nvidia had a strong third quarter in terms of annual growth, despite its earnings declining quarter over quarter.
Within the quarter, Nvidia launched its NVIDIA Turing GPU architecture to help accelerate ray tracing and new Tensor Cores for AI Interencing.
Nvidia’s Datacenter introduced its RAPIDS, an open source GPU-acceleration platform for data science and machine learning. Nvidia also introduced its RTX Servers, a new market to GPUs for photo-real rendering.
In the gaming segment, Nvidia released its GeForce RTX series. The new GPUs introduce next-generation shaders with real-time ray tracing and new AI capabilities, including Deep Learning Super-Sampling anti-aliasing.
For Nvidia’s automotive segment, it announced level 2 autopilot designs with Toyota, Volvo and Isuzu Motors. Nvidia begun production of its Xavier, a single autopilot chip.
“AI is advancing at an incredible pace across the world, driving record revenues for our datacenter platforms. Our introduction of Turing GPUs is a giant leap for computer graphics and AI, bringing the magic of real-time ray tracing to games and the biggest generational performance improvements we have ever delivered.” said Jensen Huang, Founder and Chief Executive Officer of NVIDIA.
“Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected. Our market position and growth opportunities are stronger than ever. During the quarter, we launched new platforms to extend our architecture into new growth markets – RAPIDS for machine learning, RTX Server for film rendering, and the T4 Cloud GPU for hyperscale and cloud.” concluded Huang.
For the fourth quarter, Nvidia is forecasting revenue to be USD 2.7 Billion, plus or minus 2%. GAAP and non-GAAP other income and expense are both expected to be income of approximately USD 21 Million.