November 23, 2023

Nvidia Achieves Record $18 Billion in Q3 Revenue, Credits Generative AI as Key Driver

Just days after reaching an all-time high in stock value, Nvidia reports a groundbreaking Q3 revenue of $18.12 billion.

Nvidia has revealed its impressive third-quarter revenue for 2023, hitting a new company record at $18.12 billion, propelling the company's market cap to a remarkable $1.22 trillion.

Surpassing expectations, the stellar financial performance continues a 12-month growth trajectory, showcasing a 34% increase over the previous quarter and a staggering 206% surge compared to Q3 2022.

The recent surge in Nvidia's stock price to an all-time high of $499.60 per share likely did not catch investors off guard. Jensen Huang, the founder and CEO of Nvidia, attributes this remarkable growth to the sales of artificial intelligence (AI) hardware, stating:

"Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI of NVIDIA."

Huang acknowledges the pioneers in adopting this technology, mentioning that AI startups, consumer internet companies, and cloud service providers were among the first to embrace it. He also hinted at upcoming waves of growth, stating:

"The next waves are starting to build."

This record-setting quarter coincides with a transformative period for Nvidia and the global chip market. The recent U.S. ban on chip exports to certain countries, including China, poses a challenge, given that approximately 20%-25% of Nvidia's data center revenue in recent quarters came from the Chinese market.

With the latest data center revenue disclosed at $14.51 billion, it suggests that up to $3.6 billion in Q3 earnings may be attributed to sales in China. During a Q3 earnings call, Nvidia's CFO, Colette Kress, acknowledged the potential decline in business due to the export ban but expressed confidence that these losses would be "more than offset by strong growth in other regions".

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