US chipmaker Nvidia's revenue triples to record high in 3rd quarter

By Ovunc Kutlu

ISTANBUL (AA) - Nvidia's revenue tripled to a record high during the third quarter due to rising demand from companies for hardware that is essential for artificial intelligence (AI) tasks, according to its financial results statement released Tuesday.

The US-based chipmaking giant posted record revenue of $18.12 billion in the quarter ending Oct. 29.

The amount is 206% higher than the same period last year and up 34% from the preceding quarter.

The company also posted record Data Center revenue of $14.51 billion, up 41% from the second quarter and 279% from a year earlier.

Gaming revenue was also up 81% from a year ago and up 15% from the previous quarter.

"Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI," founder and CEO Jensen Huang said in the statement.

"Large language model startups, consumer internet companies and global cloud service providers were the first movers, and the next waves are starting to build. Nations and regional CSPs are investing in AI clouds to serve local demand, enterprise software companies are adding AI copilots and assistants to their platforms, and enterprises are creating custom AI to automate the world’s largest industries," he added.

The company, however, said it expects sales to decline in the fourth quarter due to the US government announcing new and updated licensing requirements for exports to China and some other countries including Saudi Arabia, the United Arab Emirates and Vietnam.

"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," it said in a separate statement.

Due to the decline in estimated sales, Nvidia saw its stock price falling 0.88% to $495.05 per share in after-hours trading on the Nasdaq after closing Tuesday at $499.44 a share.