Club holding Nvidia (NVDA) once again came into its quarterly print with sky-high expectations — and once again, exceeded them. More importantly, guidance for the current quarter, the final three months of the chipmaker’s fiscal 2024, was just as strong. Revenue for Nvidia’s fiscal 2024 third quarter, which ended Oct. 29, surged 206% year-over-year to $18.12 billion, well ahead of analysts’ forecasts of $16.18 billion, according to data provider LSEG, formerly known as Refinitiv. Adjusted earnings-per-share grew rocketed 593% to $4.02, exceeding the LSEG compiled consensus estimate of $3.37. Adjusted gross margin of 75% beat out Wall Street’s 72.4% estimate, according to market data platform FactSet. NVDA YTD mountain Nvidia YTD The modest stock decline in the face of such great numbers likely reflects investor concerns regarding the sustainability of monstrous artificial intelligence and high-performance computing demand that Nvidia has been benefiting from. While we understand the concern — after all, the semiconductor industry is notorious for its boom-bust cycle — what we heard Tuesday evening gives us confidence in our “own it, don’t trade it” view of the stock. We think the multiyear outlook, regardless of the peaks and valleys along the way, is as bright as ever. Not to mention, nobody would blame investors sitting on big gains for taking some profits after shares ran to record highs Monday. Nvidia has soared more than 240% in 2023. Bottom line This was a very strong quarter, with almost nothing to nitpick. Yes, Nvidia came up marginally short on Automotive sales and OEM & Other sales. But to put it plainly, it just doesn’t matter, the misses were immaterial, and those segments are not what this company is all about. Automotive sales will become more important in future years. But right now, it’s all about Data Center business – and to a lesser extent, Gaming, which saw a sales beat and robust growth. Gaming is Nvidia’s second-biggest segment but…
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