- Despite Nvidia reporting impressive third-quarter earnings figures on Tuesday, including a 206% year-over-year revenue surge to $18.12 billion—surpassing consensus estimates of $16.1 billion—shares of the company experienced a decline on Wednesday. The stock was down approximately 2% the day before Thanksgiving, prompting speculation that the chipmaker's lofty pre-earnings valuation might be a contributing factor.
- The company forewarned of a negative impact in the upcoming quarter due to export restrictions affecting sales to organizations in China and other countries. In a letter to shareholders, Nvidia's finance chief, Colette Kress, stated, "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."
Why it matters
During a conference call with analysts, Kress mentioned that Nvidia is actively collaborating with clients in the Middle East and China to secure U.S. government licenses for the sales of high-performance products. Nvidia is also striving to develop new data center products that adhere to government policies and do not necessitate licenses.
