Nvidia’s earnings per share of $1.36 for the third quarter of fiscal 2023 missed analysts’ expectations of $1.40. Revenue of $8.3 billion also missed expectations of $8.4 billion.
The company’s gaming business continued to grow, with revenue up 38% year-over-year. However, its data center business slowed, with revenue up 22% year-over-year.
Nvidia’s management attributed the miss to a number of factors, including:
- The ongoing chip shortage, which has limited Nvidia’s ability to meet demand.
- The slowdown in the cryptocurrency market, which has reduced demand for Nvidia’s graphics cards.
- The war in Ukraine, which has disrupted supply chains and led to higher costs.
Nvidia’s stock fell 12% in after-hours trading following the earnings announcement.
Artificial intelligence (AI) is a key driver of growth for Nvidia. The company’s AI-powered products and services are used in a wide range of applications, including gaming, data centers, and self-driving cars.
In the third quarter, Nvidia’s AI revenue grew 45% year-over-year. The company’s AI business is expected to continue to grow in the coming years, as AI adoption accelerates.
Nvidia is a leading player in the AI market. The company’s strong track record of innovation and its leadership position in the GPU market position it well to capitalize on the growth of AI.
However, Nvidia faces a number of challenges, including the ongoing chip shortage, the slowdown in the cryptocurrency market, and the war in Ukraine. These challenges could weigh on Nvidia’s growth in the near term.
Overall, Nvidia’s earnings miss was disappointing. However, the company’s strong fundamentals and its leadership position in the AI market suggest that it is well-positioned for long-term growth.