News & Analysis

NVIDIA exceeds expectations

22 November 2023 By Klavs Valters

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One of the most anticipated earnings releases in the calendar is here. NVIDIA Corporation (NASDAQ: NVDA) announced the latest results after the closing bell on Tuesday. Let’s see how one of the companies from the ”trillion club” performed.

Company overview

  • Founded: 5/4/1993
  • Headquarters: Santa Clara, California, United States
  • Number of employees: 26,196 (2023)
  • Industry: Computer hardware, computer software, cloud computing, semiconductors, artificial intelligence, GPUs Graphics cards Consumer electronics Video games
  • Key people: Jensen Huang (President and CEO)

The results

NVIDIA reported revenue that beat Wall Street estimates at $18.12 billion for the third quarter fiscal 2024 vs. $16.12 billion expected. Revenues were up by 205% year-over-year.

Earnings per share also beat estimates at $4.02 per share (up by 48.88% year-over-year) vs. $3.367 per share expected.

The company expects revenue of around $20 billion for the fourth quarter.

CEO commentary

“Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI,” Jensen Huang, CEO of NVIDIA said in a letter to investors.

“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. NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off,” Huang highlighted how the world is adapting to and embracing AI.

Stock reaction

The stock was down by 0.92% at $499.44 a share before the results were announced.

Share price fell by around 1% in the after-hours trading as the market digested the latest results.

Stock performance

  • 1 month: +14.39%
  • 3 months: +9.36%
  • Year-to-date: +241.75%
  • 1 year: +211.41%

NVIDIA stock price targets

  • Stifel: $600
  • Piper Sandler: $620
  • Wedbush: $600
  • Bernstein: $675
  • Keybanc: $650
  • Morgan Stanley: $600
  • Citigroup: $575
  • Truist Securities: $668
  • Jefferies: $610
  • TD Cowen: $600

NVIDIA Corporation is the 6th largest company in the world with a market cap of $1.233 trillion.

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Sources: NVIDIA Corporation, TradingView, MarketWatch, Benzinga, CompaniesMarketCap

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