Nvidia Corp. (NVDA) posted weaker-than-expected third quarter earnings Wednesday, but saw solid gains in its data center business despite softness in China and a pullback in global demand.
Nvidia said adjusted earnings for the three months ending in October, the group's fiscal third quarter, came in at 58 cents per share, down 50% from the same period last year and well shy of the Street consensus forecast of 69 cents per share.
Group revenues, Nvidia said, fell 16.5% from last year to $5.93 billion, a figure that topped analysts' estimates of a $5.77 billion tally.
Data center revenues were pegged at $3.83 billion, Nvidia said, a 31% increase from last year, thanks to what it called "broad-based" gains across "U.S. cloud service providers, consumer internet companies and other vertical industries".
Revenues from gaming chips -- which are also used in cryptocurrency mining -- fell 51% from last year to $1.57 billion, "reflecting lower sell-in to partners to help align channel inventory levels with current demand expectations as macro-economic conditions and Cvoid lockdowns in China continue to weigh on consumer demand."
Professional Visualization revenues fell 65% to $200 million while Automotive revenues were up 86% to $251 million.
Looking into the current quarter, Nvidia said it sees revenues of around $6 billion, plus or minus 2%, compared to the Street consensus of $6.09 billion.
“We are quickly adapting to the macro environment, correcting inventory levels and paving the way for new products,” said CEO Jensen Huang. “The ramp of our new platforms -- Ada Lovelace RTX graphics, Hopper AI computing, BlueField and Quantum networking, Orin for autonomous vehicles and robotics, and Omniverse -- is off to a great start and forms the foundation of our next phase of growth."
Nvidia shares were marked 2.8% higher in after-hours trading immediately following the earnings release to indicate a Thursday opening bell price of $163.57 each.
