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Nvidia said its gaming sales for the fiscal Q3 were $1.6 billion, over analysts’ expectations of $1.4 billion.
Software company Nvidia (NASDAQ: NVDA) posted impressive financial results for its fiscal Q3, surpassing analyst estimates. Beginning from its fiscal Q3 revenue to its gaming segments, Nvidia performed better than expected, including its crypto-related revenue. The quarterly revenue came in at $5.93 billion. Meanwhile, the company forecasted during its fiscal Q2 that it expects sales to be between $5.8 billion and $6 billion. On the other hand, analysts predicted to record $5.78 billion in quarterly revenue for the fiscal third quarter.
Nvidia Reports Fiscal Q3 Financial Results
Also, the strong demand in data center business on the back of rising cloud adoption contributed to the impressive earnings report. During the fiscal Q3, Nvidia data center revenue jumped 31% YoY, while profits from the gaming sector dropped 51% from the previous year. Many top cloud companies utilize Nvidia chips in their system, which drives demand and, in turn, makes profits for the software company. Currently, Microsoft and Nvidia teamed up as Microsoft works on building a “massive” computer with the ability to handle intense artificial intelligence computing work in the cloud. With the extensive demand for Nvidia’s chips, the company’s market share of accelerator chips inside the world’s six biggest clouds’ infrastructure surged to 85%, according to brokerage Jefferies.
Furthermore, Nvidia said its gaming sales for the fiscal Q3 were $1.6 billion, over analysts’ expectations of $1.4 billion. However, the gaming profit represents a 51% loss YoY and a 23% decline compared to the fiscal second quarter. The software company stated:
“We believe the recent transition in verifying Ethereum cryptocurrency transactions from proof-of-work to proof-of-stake has reduced the utility of GPUs for cryptocurrency mining. This may have contributed to increased aftermarket sales of our GPUs in certain markets, potentially impacting demand for some of our products, particularly in the low-end.”
Already, the company had hinted at the possible impact of crypto mining on Gaming demand. It said it “expected cryptocurrency mining to make a diminishing contribution to Gaming demand.”
Also, adjusted earnings missed estimates of 71 cents at 58 cents.
At writing, Nvidia stock is up 2.20% in after-hours trading to $162.60, adding 1.02% in the last five days. The company has also jumped 30.47% over the past month. However, Nvidia stock has dropped nearly 50% over the past year, dropped 45.09% since the year started, and declined 15.25% in the last three months.
Meanwhile, Nvidia chief financial officer Colette Kress noted that the export restrictions affected the fiscal Q3 revenue.
“The export restriction put on by the US Department of Commerce was a blessing for Nvidia as Chinese customers started to hoard its Datacenter GPUs.”
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