NVDA -14 to 485, selling off a bit despite a nice earnings beat and strong guidance - I picked up a few shares this morning and sold the March $500 calls for a cost basis of $450 on the stock .....
briefing -
NVIDIA beats by $0.65, beats on revs; guides JanQ revs above consensus; next waves of AI are starting to build (499.44 -4.65) :
Reports Q3 (Oct) earnings of $4.02 per share, excluding non-recurring items, $0.65 better than the FactSet Consensus of $3.37; revenues rose 205.5% year/year to $18.12 bln vs the $16.19 bln FactSet Consensus.
Data Center revs grew 279% yr/yr and 41% qtr/qtr to $14.51 bln. Strong sales of the NVIDIA HGX platform were driven by global demand for the training and inferencing of large language models, recommendation engines, and generative AI applications.
Gaming revs grew 81% yr/yr and 15% qtr/qtr to $2.86 bln. Strong year-on-year growth reflects higher sell-in to partners following normalization of channel inventory levels. Sequential growth reflects strong demand for our GeForce RTX 40 Series GPUs for back-to-school and the start of the holiday season.
Professional Visualization revs grew 108% yr/yr and 10% qtr/qtr to $416 mln. The year-on-year increase reflects higher sell-in to partners following normalization of channel inventory levels. The sequential increase was primarily due to stronger enterprise workstation demand and the ramp of notebook workstations based on the Ada Lovelace GPU architecture.
Automotive revs grew 4% yr/yr and 3% qtr/qtr to $261 mln. The year-on-year increase primarily reflects growth in sales of auto cockpit solutions and self-driving platforms. The sequential increase was driven by sales of self-driving platforms.
Co issues upside guidance for Q4 (Jan), sees Q4 revs of $20.0 bln, plus/minus 2%, implying $19.6-20.4 bln vs. $17.96 bln FactSet Consensus.
GAAP and non-GAAP gross margins are expected to be 74.5% and 75.5%, respectively, plus or minus 50 basis points.
Co added, "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."
