Nvidia Earnings: Export Curbs a Minor Blip as Long-Term Outlook Remains Bullish

investing.com:

Despite Nvidia's (NASDAQ:NVDA) Q3 earnings significantly surpassing expectations, investors initially chose to divest. Nvidia stock has surged by 242% YTD to reach the $500 mark, but the chipmaker's earnings report triggered a 2.5% decline after the release.

However, a shift occurred later in the day as buyers re-entered the market, and the stock closed at just under the $500 threshold. This response contrasts with the company's initial post-report movements earlier in the year, where NVDA stock rallied following first-quarter results.

This can be attributed to the company's quarterly results surpassing expectations and the partially pessimistic outlook provided by company officials for the last quarter.

Source: InvestingPro

In its Q3 results, the company reported revenue of $18.12 billion, 12.5% above InvestingPro expectations. The company's profit per share was also announced as $4.02, exceeding the expectation by 18%. Thus, the company reached 206% year-on-year revenue growth and continued its strong outlook in the second quarter in the last quarter.

Looking at the distribution of the company's revenue, it was seen that data center revenues had a significant share with $14.5 billion. Sales to cloud providers accounted for the largest share of the higher-than-expected data center revenue growth. The company nearly doubled its sales in the gaming segment compared to last year, generating $2.86 billion in revenue.

The main factor in Nvidia's upward trend throughout the year was the demand for artificial intelligence, which positively affected many sectors. The fact that companies turn to artificial intelligence software and Nvidia offers the necessary hardware in this field is seen as the biggest factor in the