Nvidia's Q3 Earnings Report Highlights AI-Chip Demand and Forward Guidance Amid Market Volatility
Nvidia is set to report its Q3 earnings with a particular focus on forward guidance regarding demand for its AI chips. Expectations for the quarter include earnings per share of $1.26, revenue of $54.9 billion, and data-center sales of $49 billion. This represents a year-over-year revenue increase of 56%. For Q4, Nvidia projects revenue of $62.2 billion.
Despite these strong figures, Nvidia shares have declined 7.9% in November amid a broader market selloff. Notably, Thiel Macro sold its entire Nvidia stake, valued at around $100 million, while SoftBank reduced its Nvidia holdings by $5.8 billion. Analysts have pointed out potential risks to Nvidia's sustained growth. Forrester's Alvin Nguyen cautioned that demand might slow if there is a market correction or a deceleration in innovation.
Nvidia continues to lead the AI-focused chip market, and current commentary emphasizes the company's guidance on future market demand rather than near-term financial metrics. Although Nvidia beat most expectations in the last quarter, data-center sales lagged, leading to a 2.3% drop in after-hours trading. The company is viewed as a bellwether for the AI industry, with market participants closely watching to see whether AI valuations have peaked.
