Nvidia Shows Volatility After-Hours Despite Q3 Beat
Shares of Nvidia (NVDA) - Get Report were volatile after hours Wednesday despite the chipmaker reporting October (fiscal third quarter) results that topped analyst estimates for the period.
The Santa Clara-based company reported third quarter revenue of $4.73 billion, a 57% year over year increase, with earnings per share of $2.91. Analysts polled by FactSet were expecting Nvidia to report revenue of $4.41 billion on earnings of $2.57 per share.
“NVIDIA is firing on all cylinders, achieving record revenues in Gaming, Data Center and overall,” said Jensen Huang, founder and CEO of NVIDIA, in a statement. “The new NVIDIA GeForce RTX GPU provides our largest-ever generational leap and demand is overwhelming. NVIDIA RTX has made ray tracing the new standard in gaming."
Shares were down 0.2% to $535.95 after-hours Wednesday at last check.
The company's gaming chip segment, its largest business, reported revenue of $2.27 billion, up 37% year over year. Wall Street had been expecting revenue in the segment to rise 24% year over year to $2.06 billion in the October quarter.
Nvidia said that the gaming segment's performance reflected higher sales across desktop and notebook gaming GPUs, with desktop sales getting a boost from the launch of its GeForce RTX 30 series chip.
Nvidia is expecting fourth quarter revenue of $4.8 billion, plus or minus 2%, which is ahead of analyst expectations of $4.42 billion.
On Monday, the company was the subject of a bullish note from Susquehanna, which raised its price target to $610 from $560 per share.
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