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3 Eye-Opening Numbers From Nvidia’s Annual Report The Motley Fool

nvidia q3 earnings 2022

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  • And now we’re doing what they used to do in the old days, in a year, practically coming up in a quarter.
  • We showed what is possible when we can jump into virtual worlds.
  • Here are the most important numbers from the report compared to what Wall Street was expecting from the company, as compiled by Bloomberg.

And in automotive, we expect the continued ramp of our Oren design wins. All in, we expect modest sequential growth driven by automotive, gaming and data center. H-100 also delivers incredible value compared to the previous generation for equivalent AI performance it offers three x lower total cost of ownership while using five x fewer server nodes and 3.5 x less energy.

NVIDIA Announces Financial Results for Second Quarter Fiscal 2023

And so, in both cases, we now have software available practically everywhere you would like to engage it. And so, our software stack is making really great progress. Now, during the quarter, sell-through in Q3 three was relatively solid. We’ve indicated that although China lockdowns continue to channel — excuse me, challenge our overall China business. Charter Communications and advanced analytics company, heavy AI are creating Omniverse power digital twins to optimize Charter’s wireless network. In Deutsche Bahn, operator of German National Railway is using Omniverse to create digital twins of its rail network and train AI models to monitor the network, increasing safety and reliability.

As we are seeing the numbers in terms of our guidance, you’re correct, is only growing about $100 million. And we’ve indicated that three of those platforms will likely grow just a little bit. Colette, I had a question on the commentary you gave on the sequentials. It kind of sounded like data center maybe had some China softness issues. They’re usually four very, very specific products and projects that we see.

NVIDIA OVX systems will be available from Inspur, Lenovo and Supermicro by early 2023. Almost every enterprise in the world has both a cloud-first and a multi-cloud strategy. It is exactly the reason why all of the announcements that we made this year — this quarter, this last quarter since GTC about all the new platforms that are now available in the cloud. A CSP, a hyperscaler is both — are two things to us, therefore, a hyperscaler can be a sell to customer.

nvidia q3 earnings 2022

Nvidia Corp. (NVDA) is posting record sales amid the COVID-19 pandemic and its adverse effects on the global economy. The coronavirus and the related measures intended to slow its spread have triggered a surge in demand for video gaming and rapid growth of the work-from-home economy. This has helped to boost the chipmaker’s gaming and data center businesses. Nvidia’s chips are also used by businesses for applications like computer-assisted design and rendering. It reports those sales in its Professional Visualization business, which rose 109% annually to $643 million.

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Gaming is still Nvidia’s largest market, as its latest GeForce graphics processors are ideal for playing advanced computer games. The gaming business rose 37% year-over-year to $3.42 billion driven by GeForce sales, the company said. In February when Nvidia released in fiscal 2023 report, many investors likely already knew the company was a dominant force in the AI tech realm. However, I’d venture to say that most investors didn’t realize at that time just how humongous the demand for its tech to enable generative AI would be.

Sequentially, both GAAP and non-GAAP operating expense growth was in the single-digit percent, and we plan to keep it relatively flat at these levels over the coming quarters. We returned $3.75 billion to shareholders in the form of share repurchases and cash dividends. At the end of Q3, we had approximately $8.3 billion remaining under our share repurchase authorization through December €˜23. Let me turn to the outlook for the fourth quarter of fiscal 2023. We expect our data center revenue to reflect early production shipments of the H100, offset by continued softness in China. In gaming, we expect to resume sequential growth with our revenue still below end demand as we continue to work through the channel inventory correction.

As we approach the latter part of 2023, we know that AI has been a catalyst for some of the world’s largest tech companies to drive U.S. equity markets higher for the better part of the year so far. After a rough 2022, the change in performance from negative to positive was welcome. However, we know that investors overestimate the short term and underestimate the long term, so there is a chance that the AI journey will take longer and we’ll have some ups and downs, performance-wise.

It is also quite effective at AI training, machine learning. We — Grace, I think I’ve said before that we will have production samples in Q1, and we’re still on track to do that. Grace also is memory coherent to our GPU, which allows our GPU to expand its effective GPU memory, fast GPU memory by a factor of 10. That’s not possible without special capabilities that are designed between hopper and Grace and the architecture of Grace.

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. Following four consecutive quarters of YOY declines, revenue rose 40.8% in Q4 FY 2020. Growth then decelerated to 38.7% in the first quarter of the current FY 2021, but accelerated to 49.9% in Q2.

nvidia q3 earnings 2022

We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. And I wonder if you could maybe give us a little bit more detail about what you’re thinking there and what sort of drove the decision? And I guess the derivative of that, Jen-Hsun, how — that decision to talk about the data center business to hyperscalers differently.

Nvidia’s data center revenue rose sharply last year amid the pandemic, climbing 124.5% in FY 2021. That was a significant acceleration from the previous year’s growth of 1.7% and it was the investing vs speculation fastest pace since FY 2018. Growth has so far decelerated through the first half of FY 2022, slowing to a pace of 79.5% YOY in the first quarter and again to 35.1% YOY in the second.

Nvidia revenue falls 17% but data center growth remains strong

This information is still relevant and should help investors make more informed investing decisions in the AI space. These are subject to a number of significant risks and uncertainties, and our actual results may differ materially. All our statements are made as of today, November 16, 2022, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website.

The RTX 40 Series GPUs features DLSS 3, the neuro rendering technology that uses AI to generate entire frames for faster game play. Our third-generation RTX technology has raised the bar for computer graphics and help supercharge gaming. For example, the 15-year old classic game portal, now reimagined with full ray tracing and DLSS 3 has made it on Steam’s top 100 most wish-listed gains. The total number of RTX games and applications now exceeds 350. My name is Emma, and I will be your conference operator today.

  • These enable developers to easily adopt large language models and deploy customized AI applications for content generation, tech summarization, chatbox, co-development, protein structure and biomolecular property predictions.
  • Growth then decelerated to 38.7% in the first quarter of the current FY 2021, but accelerated to 49.9% in Q2.
  • And so, in the places where we focus networking is really quite important.
  • GAAP financial measures, this press release includes preliminary estimates of non-GAAP measures of certain components of financial performance.

Its GPU-based approach to deep learning, a form of AI, dominates the AI training market and is a leader in the AI inferencing market. AMD and Intel have chips used for AI processing — with AMD planning to ramp production of its new powerful MI300 AI chip in the fourth quarter — but neither is as big a player in this market as Nvidia. During the call, we can expect Nvidia to further discuss the results found in its latest earnings report, which covers the past few months of business.

During the third quarter of fiscal 2023, NVIDIA returned to shareholders $3.75 billion in share repurchases and cash dividends, bringing the return in the first three quarters to $9.29 billion. As of October 30, 2022, the company had $8.28 billion remaining under its share repurchase authorization through December 2023. “Is Generative AI the most important new computer technology ever? Maybe!,” said Oracle Chairman and CTO, Larry Ellison.

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When investors buy Nvidia stock, they’re also getting a stake in a mini tech mutual fund of sorts. Nvidia ended fiscal 2023 with $299 million in investments in non-affiliated entities. Of this total, $288 million and $11 million, respectively, were the values of its investments in privately held equity securities and publicly held stocks. The fair value of the privately held equities are the company’s estimates. The Nvidia Q earnings call will take place Wednesday, November 16, 2022, at 2 p.m.

Nvidia expects gross margin for the current quarter to recover to between 63.2% and 66.0%. But Nvidia, like other chipmakers, has also been stung by the chip shortage. The company’s consumer graphics cards are incredibly scarce thanks to a run on them by both cryptominers and resellers using bots to grab as many cards as possible. Nvidia (NVDA) reported its Q3 earnings after the bell on Wednesday beating analysts’ predictions on the top and bottom line as revenue jumped 50% year-over-year. We showed what is possible when we can jump into virtual worlds.

Nvidia Q3 FY2022 Earnings Report Preview: What to Look For

In a sign of how Nvidia is navigating supply chain issues, the company said it had $9 billion in long-term supply obligations, up from $2.54 billion a year ago. Huang also said Nvidia’s supply constraints were easing and that the company’s supply of products would increase “substantially” in the second half of 2022. There are risks involved with investing, including possible loss of principal. Foreign investing involves currency, political and economic risk.

That demand was fueled largely by a surge in video gaming and cloud computing during the COVID-19 pandemic, pushing Nvidia’s stock to new highs in recent months. Nvidia Chief Executive Officer (CEO) Jensen Huang said last week that he thinks demand for semiconductors will continue to outpace supply through the next year. Late last month, Nvidia (NVDA -0.68%) turned in a report for its second quarter of fiscal 2024 (which ended July 30) that was amazing.

After submitting your request, you will receive an activation email to the requested email address. You must click the activation link in order to complete your subscription. You can sign up for additional alert options at any time. Nvidia was in talks to purchase chip technology company Arm from SoftBank, but the company announced earlier this month that the transaction had fallen apart under regulatory scrutiny.

Post-Nvidia’s Q2 2023 Earnings—Will the ‘AI Hype’ Keep Driving Equity Performance?

Nvidia has a few smaller lines of business, including professional visualization and automotive chips. Professional visualization shrunk 65% on an annual basis to $200 million. Automotive grew 86% but is still very small, reporting $251 million in sales.

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