Wednesday

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<p class="has-drop-cap">Shares of Nvidia (NASDAQ: NVDA) fell slightly in the premarket trading Wednesday despite a robust <a aria-label="Q3 report (opens in a new tab)" href="https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-third-quarter-fiscal-2024" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Q3 report</a> and upbeat revenue guidance for the fourth quarter. The lack of upside could be attributed to several factors, most notably the anticipated negative impact of chip export restrictions.&nbsp;&nbsp;</p>
<h3 id="nvidia-s-q3-revenue-soars-206">Nvidia’s Q3 Revenue Soars 206%</h3>
<p>Nvidia reported financial results for the fiscal Q3 2024, beating the top and bottom lines estimates as the AI-driven demand for its high-end chips continues.</p>
<p>The chipmaking giant reported adjusted earnings per share (EPS) of $4.02 in the third quarter, beating the consensus estimates of $3.37. Net income stood at a staggering $9.24 billion, or $3.71 per share, compared to $680 million, or 27 cents per share, in the year-earlier quarter.</p>
<p>Revenue came in at $18.12 billion, up 206% year-over-year (YoY) and well above the estimated $16.18 billion. $14.51 billion of the overall figure came from Nvidia’s data center, above the expected $12.97 billion and 279% higher year-over-year.&nbsp;</p>
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<h3 id="nvidia-down-in-premarket-after-robust-report-and-q4-guidance">Nvidia Down in Premarket After Robust Report and Q4 Guidance</h3>
<p>Going forward, Nvidia expects $20 billion in revenue for the fiscal Q4, implying more than 230% YoY revenue growth. However, despite positive Q3 results and revenue guidance, shares of Nvidia are down in Wednesday’s premarket trading.</p>
<p>The dip can be attributed to a combination of factors: the expected negative impact in Q4 stemming from the recent <a href="https://tokenist.com/will-the-new-chip-export-restrictions-hurt-nvidia-shares-open-6-down/" rel="noopener noreferrer nofollow" class="deco-link">US restrictions on chip exports</a> to China and other countries.&nbsp;</p>
<blockquote class="wp-block-quote">
 <p>“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.”</p> <cite>– said Colette Kress, Nvidia’s CFO. </cite>
</blockquote>
<p>The Tokenist previously reported that the export curb controls may force Nvidia to <a href="https://tokenist.com/new-chip-restrictions-can-force-nvidia-to-cancel-5b-in-orders-report/" rel="noopener noreferrer nofollow" class="deco-link">cancel $5 billion worth of AI chip orders to China</a>. Regarding Q3 earnings, the constraints made no “meaningful impact,” the company said.&nbsp;</p>
<p>Despite a robust earnings report, the subdued performance of Nvidia’s shares could be due to the possibility that the market had already factored in the anticipated gains in the stock. Nvidia’s shares <a href="https://tokenist.com/after-gaining-229-in-a-year-nvidias-stock-price-hits-record-high-day-before-earnings-report/" rel="noopener noreferrer nofollow" class="deco-link">hit an all-time high</a> on Tuesday, bringing its year-to-date gains to roughly 250%.&nbsp;</p>
<p>The chip stock saw unprecedented growth in 2023 amid the ongoing AI boom. Nvidia <a aria-label="plays a key role (opens in a new tab)" href="https://www.reuters.com/technology/why-are-nvidias-shares-soaring-what-is-its-role-ai-boom-2023-05-25/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">plays a key role</a> in this tech revolution as its high-end graphics processing units (GPUs) power the most powerful generative AI products, such as ChatGPT.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Do you think the lack of price gains after a blockbuster report indicates that Nvidia’s valuation may have peaked? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/why-nvidia-dipped-despite-blockbuster-q3-earnings/">Why Nvidia Dipped Despite Blockbuster Q3 Earnings</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Why Nvidia Dipped Despite Blockbuster Q3 Earnings

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