Nvidia’s revenue and profit soared thanks to demand for AI chips

According to the results of the third quarter, the revenue of the American technology company Nvidia grew up 206% year-on-year and up 34% from the second quarter to reach a record $18.12 billion. Revenue from the data center division was also a record: up 279% year-on-year at $14.5 billion. Net profit year-on-year grew by 588% and amounted to $10 billion. Almost all indicators exceeded analysts’ forecasts – thanks to the active growth in demand for microprocessors for AI.

However, in the fourth quarter, Nvidia expects a decline in sales of its products in China, which is a key market for the company. This will be caused by tightening US export restrictions, which affect a significant volume of microprocessors produced by the company. Sales of such microprocessors accounted for nearly a quarter of the data center division’s sales in recent quarters. How noted Nvidia CFO Colette Kress said, “Export restrictions will have a negative impact on our Chinese business, and we cannot yet reliably estimate the extent of that impact, even over the long term.”

The company is currently developing microprocessors that will meet export requirements and will not be subject to restrictions, but they will not yet be included in fourth-quarter reporting. In addition, the company notified about the risks associated with a military conflict in the Middle East: Nvidia has the headquarters of its network division in Israel. The division’s quarterly sales grew year over year by 155%. However, a significant number of local employees were conscripted into the army in connection with the fighting between Israel and the Palestinian Hamas movement. As the company notes, the absence of these employees will negatively impact the division’s future operations if the conflict drags on.

About how the Huawei corporation was convicted of creating “secret factories” for the production of microchips – in the material of Kommersant “Underground Chip Empire”.

Alena Miklashevskaya