Nvidia Corp. beat Q3 earnings and revenue expectations. However, the semiconductor company warned that capacity issues and lower demand from Mellanox would affect near-term revenue growth in its key businesses.
Nvidia’s Q3 earnings came in at $2.91 per share, up +63% year-overt-year and 34 cents ahead of Street forecasts.
Revenues for the quarter increased +57% year-over-year to $4.73 billion, surpassing the Street consensus forecast of $4.4 billion.
The Company’s datacenter revenues (which make up around 50% of the group's total) climbed +8% quarter-over-quarter and +162% year-over-year to $1.9 billion. This includes impact of a major purchase from a China-based client, and its recent acquisition of Israel-based networking group Mellanox.
Gaming revenue surged +37% year-over-year to $2.27 billion.
According to Nvidia, gaming revenue is likely to continue to accelerate. But CFO Collette Kressal mentioned that due to industry-wide capacity constraints and long cycle times, it may take a few more months for product availability to catch up with demand.
The company’s guidance is revenue of $4.8 billion, plus or minus 2%, with CFO Collette Kress also suggesting a decline in revenue from Mellanox, which will likely mean modestly lower sequential data center revenues.