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On Wednesday night, Nvidia released their third-quarter numbers. The wait ahead of results from a stock that has been on a hot streak is always anxiety-inducing. Will the reported numbers match sky-high analyst expectations? So far this year, Nvidia shares are up 162%. It's touted as the next company to reach $1 trillion in market capitalisation (it's currently at $730 billion).
I'm pleased to say that the numbers were very strong, and the stock price jumped 8.3% last night. Revenue was up 50% to $7.1 billion, higher than the $6.8 billion expected. Nvidia saw strong growth from their data centre division, which will soon be bigger than gaming, the founding division of the company. Sales of equipment to gamers grew by 42%, impressive but still slower than the 55% growth seen in data centres.
Nvidia has grown revenues significantly faster than expenses, so the 50% increase in revenue resulted in an 84% increase in profits.
Nvidia is now seen as a key supplier of hardware to power the Metaverse, which everyone is talking about. In fact, Nvidia has their own version of the concept which it calls the Omniverse, where developers from different platforms can collaborate. Nvidia is at the forefront of these technological changes. Their chips, data centres and AI software is positioned to push the world forward.
