Bloomberg Technology
Special Edition: Nvidia Forecast Misses Loftiest AI Estimates
Nov 20, 2024
Ryan Vlastelica, an equities reporter at Bloomberg News, provides keen insights into Nvidia's recent revenue forecast, which fell short of the market's lofty expectations. He discusses the implications of this performance, including a notable 4% drop in after-hours trading. Vlastelica highlights the paradox of strong product demand against the backdrop of supply chain challenges. The conversation also touches on Nvidia's investments in R&D, its partnerships with major tech firms, and the broader market dynamics driving competition in the semiconductor industry.
19:36
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Quick takeaways
- Nvidia's revenue forecast indicates strong current performance but highlights the limitations of growth amid high market expectations and supply constraints.
- The company's need to diversify its customer base beyond hyperscalers is crucial to maintaining its competitive edge in the evolving AI and semiconductor markets.
Deep dives
NVIDIA's Financial Performance
NVIDIA's third quarter results showcase a strong financial performance, with adjusted earnings per share surpassing estimates at 81 cents, compared to an expected 74 cents. Revenue also exceeded expectations, reaching $35.1 billion against an estimate of $33.25 billion, reflecting robust demand for their products. Data center revenue particularly impressed, coming in at $30.8 billion, exceeding the forecast of $29.14 billion. Despite these positive results, shares dropped by approximately 4% in after-hours trading, indicating that high market expectations may have contributed to profit-taking among investors.
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