Nvidia share price falls on downbeat China sales outlook
Also Read: OpenAI researchers sent letter warning of AI threat ahead of Sam Altman's ouster Nvidia forecast adjusted gross margins of 75.5% for the fourth quarter, above analyst estimates of 72.64%. Nvidia forecast current-quarter revenue of $20 billion, plus or minus 2%.
Nvidia is set to take a hit from the vastly expanded US export controls on what the company can sell to China. Sales of the affected chips made up nearly a quarter of Nvidia's datacenter sales in the past few quarters, Reuters reported.
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) “Export controls will have a negative effect on our China business, and we do not have good visibility into the magnitude of that impact even over the long term," Chief Financial Officer Colette Kress said. Also Read: Nvidia's AI boom almost blows past politics The company’s adjusted third-quarter revenue tripled to $18.12 billion, beating estimates of $16.18 billion.
Excluding items, the company earned $4.02 per share as against expectations of $3.37 a share, Reuters reported. Nvidia shares have jumped more than 240% this year and are up over 13% in the past one month.
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