NVIDIAs net profit was $899 million, down 27% year on year, up 63% month on month; diluted earnings per share was $1.45, down 26% year on year, up 61% month on month.
According to non-U.S. GAAP, NVIDIAs net profit in the third quarter was $1.103 billion, down 4% year-on-year and up 45% month on month; diluted earnings per share was $1.78, down 3% year-on-year and up 44% month on month, exceeding analysts expectations.
NVIDIAs third quarter operating expenses were $989 million, up 15% year on year and 2% month on month. Among them, R & D expenditure was $712 million, up from $605 million in the same period last year; sales, general and administrative expenditure was $277 million, up from $258 million in the same period last year.
NVIDIAs third quarter operating profit was $927 million, down 12% year on year and up 62% month on month.
Although the companys quarterly revenue reported exceeded analysts expectations, NVIDIA gave a tepid forecast for the fourth quarter, indicating that the recovery of game video card demand was slower than expected.
The company said revenue in the third quarter was $3.01 billion and earnings per share after certain costs were $1.78. By contrast, Wall Street expects earnings per share of $1.57 and revenue of $2.9 billion.
NVIDIA said revenue in the fourth quarter would be $2.95 billion, up and down 2%. The average analyst estimate is $3.1 billion. The gross profit margin is 64%, floating up and down by 50 basis points.
NVIDIA said it expects strong continuous growth in the data center chip business, but sales of geforce notebook graphics cards and other game system components will decline seasonally.
Since 2017, by looking for new customers for game chips, NVIDIAs market value has almost doubled under the leadership of CEO Huang Renxun. But most of the sales still come from the game chip business. Data centers use a large number of graphics cards to accelerate AI software, which is the biggest driving force for the companys new business growth.
Prior to Thursdays results, NVIDIAs revenue had fallen for three consecutive quarters as customers accumulated a large number of unused chips and did not need to purchase too many new chips.
NVIDIAs geforce Series graphics cards are particularly popular among veteran video game players, who are willing to pay more than a laptop for a component of a desktop computer. It also allows NVIDIA to dominate this lucrative market. This year, amd launched a more competitive new chip, which is cheaper.
In the data center area, while NVIDIA is the first to use accelerators to help AI run, other companies are also designing competing components, including data center owners such as Google. (Chen Chen)
Source: Wang Fengzhi, editor in charge of Netease Technology Report