Nvidia Q3 Results Beat Estimates; Issues Guidance

Nvidia (NVDA) delivered better-than-expected fiscal Q3 2022 results, characterized by record revenue. Earnings and revenue topped consensus estimates, driven by growth in the Gaming, Data Center, and Professional Visualization market. NVDA shares fell 3.12% to close at $292.61 on November 17.

Nvidia is a U.S. company that designs, manufactures, and sells computer graphics processors, chipsets, and related multimedia software.

Q3 Results

The company delivered record quarterly revenue of $7.10 billion, up 50% year-over-year exceeding consensus estimates of $6.83 billion. The Gaming unit posted record revenue of $3.22 billion, up 42% year-over-year, while Data Center revenue grew 55% to $2.94 billion.

The Professional Visualization segment also posted record revenue of $577 million, up 144% from the same quarter last year. The Automotive segment, on the other hand, delivered an 8% year-over-year increase in revenue to $135 million.

Nvidia posted non-GAAP diluted EPS of $1.17, up 60% from the same quarter last year, exceeding the consensus estimate of $1.11. (See Top Smart Score Stocks on TipRanks).

Q4 Outlook

During the quarter, Nvidia paid cash dividends amounting to $100 million. It is also slated to pay a quarterly cash dividend of $0.04 a share on December 23, 2021, to shareholders on record as of December 2, 2021.

For Q4, the company expects revenue of $7.40 billion, plus or minus 2%. The company also expects non-GAAP gross margins of 67%, plus or minus 0.5%.

Stock Rating

Recently, Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on the stock with a price target of $335, implying 14.49% upside potential to current levels.

Consensus among analysts is a Strong Buy, based on 20 Buys and 2 Holds. The average Nvidia price target of $334.95 implies 14.5% upside potential to current levels.

NVDA scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.