57% revenue in 3Q

Nvidia announced revenue growth of 37% in the Games segment and 162% in the Data Centre segment. However, shares have fallen. Nvidia warned that data centre revenues will fall in Q4.

Nvidia shares (NVDA), which increased 128.3% since the beginning of the year, fell after the closing of trading on Wednesday, despite the better-than-expected report for Q3 Finans. 2021, which ended on 31 October.

Nvidia reported a 63% increase in earnings per share to $2.91.

Quarterly earnings (net income) increased 66% to $1.83 billion, compared to $1.1 billion in the 3Q 2020 fiscal year.

Total income increased by 57% to $4.73 billion.

Revenues of Nvidia divisions

The two largest subdivisions of Nvidia graphic processors "Games" segment and server processors "Data Centre" showed the largest growth.

Revenue in the Games segment increased 37% to a new record of USD 2.27 billion due to increased demand for brand new computers and set-top boxes thanks to the covid-19, as well as new Nvidia graphics cards. One of the new models, GeForce RTX 3080, appeared on the shop shelves in September and consumers immediately bought the latest graphics card.

Datacenter revenue grew 162% to $1.9 billion, marking the second consecutive quarter of such high growth thanks to Mellanox revenue, the acquisition of which Nvidia completed in 2Q.

The CFO of Nvidia Colette Kress said: "Mellanox's revenues account for 13% of the company's total revenue and about one third of Datacenter's revenue. For this reason, excluding the Mellanox contribution, the total revenue of the company has increased by approximately 36%".

She also said that some of the growth in Mellanox's revenue was generated by sales of network products to a Chinese customer, but warned that such "unusually large" sales would not be repeated in 4Q.

In an interview with Reuters, the CEO of Nvidia Jensen Huang said: "This has nothing to do with regulatory issues".

Earlier in October, Nvidia presented a long-term multi-year plan to create a new type of chip for data centres in an effort to capture a larger share of this growing market.

Forecasts from Nvidia

Nvidia said it expects a 4Q return of $4.8 billion.