Nvidia (NVDA) financial results review and outlook for the 3Q (August-October) fiscal year ending 2023/1
In the company's financial results for the fiscal year ending 2023/1 3Q (August-October), sales were 5.931 billion dollars, down 17% from the same period last year. After non-GAAP adjustments, EPS was 0.58 dollars, down 50% from the same period. Although sales exceeded market expectations ($5.77 billion), adjusted EPS fell short of market expectations ($0.69). In terms of sales, GPU shipment suppression associated with inventory adjustments resonated, and the game division, which had been the main force until now, fell 51% in sales (1.57 billion dollars), which had a big impact on the overall decline in sales. Also, in response to a decline in sales due to inventory adjustments, sales in the professional visualization division declined 65% ($200 million). Meanwhile, in response to strong sales of major US cloud providers, the data center division increased sales by 31% (3.83 billion dollars), increased sales of AI autonomous driving solutions also contributed, and the autonomous driving division had an 86% increase in sales (250 million dollars). On the profit and loss side, in response to a decline in demand for data centers for China, there was an offset by partial guarantee benefits (70 million dollars), but gross margin ratio fell 10.9 points when inventory costs were recorded at 70.2 billion dollars. Remuneration costs associated with personnel increases and salary increases increased, data center infrastructure costs increased, adjusted operating expenses increased 30%, and adjusted operating profit decreased 55% (1,536 billion dollars). The company carried out shareholder returns of 3.75 billion dollars in the form of share buybacks and cash dividends during the period.
Sales were 6 billion dollars, ± 2% of the same period last year, according to the guidance (median value) for the 4th quarter (November-January) of the fiscal year ending 2023/1. The adjusted gross margin ratio is 66% of the same ± 50 bp. Adjusted operating expenses were 1.78 billion dollars (up 11.3% from the same period), and growth in adjusted operating expenses was predicted to increase in the single digit range over the next few quarters. In addition to pointing out that the growth engine will continue to be data centers and autonomous driving, the company also expressed the view that it will follow a gradual growth trajectory due to a recovery in the game sector.
The trend of artificial intelligence (AI) is likely to be a litmus test for the company's data center towards further high growth. As can be seen in the big hit of Open AI's “Chat GPT,” AI needs to instantaneously process large amounts of data, so the company's high-performance chip GPUs are indispensable. While 25,000 NVIDIA GPUs have already been implemented in “Chat GPT,” Google, Microsoft, and even Opera announced the introduction of AI chatbots following “Chat GPT,” so the company's growing demand for GPUs for AI is attracting attention. As we prepare to announce the company's January 4th quarter (November-January) results on 2/22 (local time), I would also like to pay attention to whether there are any references to the prospects for GPUs for AI.
Sales were 6 billion dollars, ± 2% of the same period last year, according to the guidance (median value) for the 4th quarter (November-January) of the fiscal year ending 2023/1. The adjusted gross margin ratio is 66% of the same ± 50 bp. Adjusted operating expenses were 1.78 billion dollars (up 11.3% from the same period), and growth in adjusted operating expenses was predicted to increase in the single digit range over the next few quarters. In addition to pointing out that the growth engine will continue to be data centers and autonomous driving, the company also expressed the view that it will follow a gradual growth trajectory due to a recovery in the game sector.
The trend of artificial intelligence (AI) is likely to be a litmus test for the company's data center towards further high growth. As can be seen in the big hit of Open AI's “Chat GPT,” AI needs to instantaneously process large amounts of data, so the company's high-performance chip GPUs are indispensable. While 25,000 NVIDIA GPUs have already been implemented in “Chat GPT,” Google, Microsoft, and even Opera announced the introduction of AI chatbots following “Chat GPT,” so the company's growing demand for GPUs for AI is attracting attention. As we prepare to announce the company's January 4th quarter (November-January) results on 2/22 (local time), I would also like to pay attention to whether there are any references to the prospects for GPUs for AI.
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