Stronger-than-expected Q3 earnings for Nvidia

By: Miguel A. Rodriguez

16:04, 19 November 2020

Nvidia crushed both earnings and revenue expectations

When it comes to graphic processing units (GPUs), one of the market leaders – Nvidia posted its Q3 2020 figures, beating every expectation.

In Q3, Nvidia reported an adjusted EPS of $2.91, topping the $2.57 forecasted. Also, the revenue beat the $4.41 billion consensus coming in at $4.73 billion. According to the company’s statement, these revenues set a record, increasing by 57% since last year.

Nvidia’s quarterly success was driven by the computing and networking segment, which went up 146% to $1.94 billion from last year’s figures. The graphics segment increased by 25% to $2.79 billion compared to Q3 2019.

Despite the outstanding results, Nvidia’s representatives expect that revenues generated by the data center decrease in the current quarter, given that the Chinese customers are not purchasing its networking products – Mellanox. Also, the overall revenue is forecasted to be in line with the expectations at $4.8 billion.

Now, Nvidia is waiting to close a $40 billion with SoftBank to buy ARM from it. The deal is to be completed in the first half of 2022.

Even though the quarterly figures came in stronger-than-expected, Nvidia stock price fell 3%.


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.