Nvidia NVDA earnings Q2 2023


About The Event

And then, longer term, Jensen, we have seen a lot of announcements from NVIDIA about your enterprise software opportunity. It sounds very promising, but how should be model it? Is it cannibalizing demand you might have otherwise seen from your public cloud customers or is this incremental to grow?

  • And I bring it up because there’s a lot of blogs out there that would suggest that as much as you guys are trying to limit the ability of miners to use GeForce, there are some work-arounds.
  • But there are several reasons why it’s different this time.
  • Customers are also turning to NVIDIA GPUs to take AI to production and shifting from CPUs to GPUs, driven by the stringent performance latency and cost requirements of deploying and scaling deep learning AI workloads.
  • GAAP gross margin of 64.8% for the second quarter was up 600 basis points from a year earlier, reflecting the absence of certain Mellanox acquisition-related costs.
  • And the third dynamic is around data center storing software.
  • And as you know, we have a large installed base of PC gamers, the new end architecture called GTX based on programmable shatters that we invented some 20 years ago.

GAAP gross margin was 53.6% and and non-GAAP gross margin was 56.1%. There is tremendous energy in the gaming community that we believe will continue to fuel strong fundamentals over the long term. The number of simultaneous users on steam just hit a record of $30 million, surpassing the prior peak of $28 million in January. Activision’s liteforex broker review Call of Duty Modern Warfare 2 set a record for the franchise with more than $800 million in opening weekend sales. Topping the combined box office openings of movie blockbusters, TopGun Maverick and Dr. The No. 1 most energy-efficient system is the Flat Iron Institute Henry, which is the first top 500 system featuring our H-100 GPUs.

NVIDIA (NASDAQ:NVDA) Third Quarter 2023 Results

But the rate of growth of network sizes –AI model sizes is doubling every two months. It’s doubling now every year or two years, it’s doubling every two months. We’re now talking about training AI models that are 100 trillion parameters large. The human brain has 150-plus trillion synapses, and so — or neurons.

However, both Q1 and Q2 posted a stronger-than-expected quarter with an improvement in the final earnings growth rate while narrowly avoiding an earnings recession. It is likely that Q2 was the bottom in earnings as y/y growth is forecasted to be positive for the next eight quarters. The company’s data center business did slightly better. It rose 61% how to write an effective rfp request for proposal on an annual basis to $3.8 billion, driven by what the company calls “hyperscale” customers, which are big cloud providers. As you know, RTX is a fundamental reset of computer graphics. And as you know, we have a large installed base of PC gamers, the new end architecture called GTX based on programmable shatters that we invented some 20 years ago.

Both of those technologies are increasingly important for the rapidly growing data center market. Demand for remote computing power increased substantially during the pandemic as more and more people began working from home and businesses were forced to shift certain operations online. That development has helped to boost demand for Nvidia’s chips used by data centers. Nvidia reported Q2 FY 2022 earnings and revenue that beat analysts’ expectations. Adjusted EPS rose 89.9% compared to the year-ago quarter, slowing from the previous quarter’s rapid pace. Revenue grew 68.3% year over year (YOY), also slowing from the pace set in Q1.

The competitive gamers, NVIDIA Reflex, which include latency is now supported by 20 games. In an effort to address the needs of miners and direct GeForce to gamers, we increased the supply of cryptocurrency mining processors, or CMP, and introduced low hash rate GeForce GPUs with limited Ethereum mining capability. Over 80% of our Ampere architecture-based GeForce shipments in the quarter were both hash rate GPUs.

It’s unheard of to ship supercomputers to every cloud service provider in a quarter. And so, we’re working hand with every one of them, and every one of them are racing to stand up hoppers. We expect them to have hopper cloud services stood up in Q1. And so, we are expecting to ship some volume, we’re expecting to ship production in Q4, and then we’re expecting to ship large volumes in Q1. Customers are clamoring to ramp hopper as quickly as possible, and we are trying to do the same. We are all hands on deck to help the cloud service providers stand up the supercomputers.

S&P Futures

We have been building for those architectures to come to market and as such to say. We are always looking at our inventory levels at the end of each quarter for our expected demand going forward. Revenue of $3.83 billion was up 1% sequentially and 31% year-on-year. This reflects very solid performance in the face of macroeconomic challenges new export controls and lingering supply chain disruptions. Year-on-year growth was driven primarily by leading U.S.

Key Financial Highlights

That said, demand in China more broadly remains soft, and we expect that to continue in the current quarter. The webcast will be available for replay until the conference call to discuss our financial results for the fourth quarter and fiscal 2023. It can’t be reproduced or transcribed without our prior written consent. During this call, we may make forward-looking statements based on current expectations. The first half of the year has been far better than expected when comparing expectations at the start of the year which was a more doom and gloom narrative along with the possibility of an earnings recession.

Part 4 – Which companies have seen the largest revisions heading into earnings season?

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. They are also a cell with partner on the public cloud side of their business.

Nvidia Earnings Call Recap

As the number and scale of public cloud computing and Internet service companies deploying NVIDIA AI grows our traditional hyperscale definition will need to be expanded to convey the different end market use cases. We will align our data center customer commentary going forward accordingly. the international handbook of shipping finance Other vertical industries, such as automotive and energy, also contributed to growth with key workloads relating to autonomous driving, high-performance computing, simulations and analytics. Nvidia’s data center revenue grew 54.5% YOY, accelerating from the previous quarter’s pace.

It’s not a statement about the current quarter in inventory, as you can see. It usually takes two or three quarters for us to build product for the future demand. And over the years, our rich ecosystem and our software stack has been integrated into developers and start-ups of all kinds, but more so — more than ever, we’re at the tipping point of clouds, and that’s fantastic. Because if we could get NVIDIA’s architecture and our full stack into every single cloud, we could reach more customers more quickly. And this quarter, we announced several initiatives, one has several partnerships and collaborations, one that we announced today, which has to do with Microsoft and our partnership there.

So does this rollout sort of look relatively typical from that perspective? Or should we expect a more perhaps delayed start of the growth trajectory where we see maybe substantially more growth in, let’s say, second half of ’23. It goes all the way back to when we first announced the acquisition of Mellanox. I think at the time, they were doing about a few hundred million dollars a quarter, about $400 million a quarter. And now we’re doing what they used to do in the old days, in a year, practically coming up in a quarter. And so, that kind of tells you about the growth of high-performance networking.

One is called deep recommender systems, which is quite essential now to the best content or item or product to recommend to somebody who’s using a device that is like a selfie or interacting with a computer just using voice. You need to really understand the nature, the context of the person making the request and make the appropriate recommendation to them. 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. They just revealed what they believe are the ten best stocks for investors to buy right now… That’s right — they think these 10 stocks are even better buys.

After first announcing an output cut in April, analysts said Samsung slashed more production in the third quarter to reduce inventory and weather a chip glut driving the worst industry downturn in decades. ARM is a percentile stock ranking model that is designed to predict future changes in analyst sentiment by looking at changes in estimates across EPS, EBITDA, Revenue, and Recommendations over multiple time periods. The last two columns display both the current ARM score and its 30-day change.

There were some of the things that we’ve spoken about in the past that really makes NVIDIA the ideal platform to scale out with. A brighter spot was Nvidia’s data center business, which reported $3.83 billion in sales, up 31% year-over-year. Nvidia attributed the growth to sales to U.S. cloud service providers and consumer internet companies. NVIDIA networking is synonymous with the highest data center throughput and enjoying record results. Oren is the world’s first computing platform designed for AI-powered autonomous vehicles and robotics and putting automotive on the road to be our next multibillion-dollar platform. These computing platforms run NVIDIA AI and NVIDIA Omniverse, software libraries and engines that help the companies build and deploy AI to products and services.

Conversely, Materials, Industrials, Consumer Staples, and Real Estate have seen a downgrade in earnings growth expectations for the next four quarters (including Q3). Exhibit 3 highlights earnings momentum at a sector level, defined as the rate of change in Q3 growth expectations over the last three months, expressed in percentage points. Consumer Discretionary has seen the strongest momentum heading into earnings season (+9.5 ppt) followed by Communication Services (+5.9), Technology (+4.6), and Energy (+3.1). Materials has seen the weakest momentum (-11.8) followed by Industrials (-6.4), and Consumer Staples (-4.2). Analysts have moderately raised earnings expectations heading into earnings season for the first time in six quarters. In Q2, we saw 62 negative pre-announcements compared to 39 positive heading into earnings season, yielding a 1.6 n/p ratio.

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