Computer chip maker Nvidia is once again reporting revenue above expectations, but warns of declining sales in China next quarter.
The technology company has been one of the main drivers behind the technological improvement in US stock markets so far in 2023.
Nvidia’s stock price has risen more than 200 percent since the new year.
In the third quarter, the company recorded revenues of $18.12 billion, a significant increase from $5.93 billion in the same quarter last year.
Nvidia uses what are called skewed fiscal years, so the third quarter applies from August to October.
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Administrators’ shipping preferences
In its estimates, Bloomberg had a jump in revenue to $16.1 billion, and Nvidia thus beat expectations.
Waiting to fall in China
The company indicates that the next quarter will be negatively affected by export restrictions in China and other countries.
– We expect sales to these locations to decline significantly in the fourth quarter, the company wrote in a letter For shareholders.
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The company still has $20 billion in revenue in its fourth-quarter accounts, which means another increase.
The stock price fell 2 percent in after-market trading after the quarterly report.
Produce components
Nvidia produces some of the most powerful components needed to build AI products, with the most advanced ecosystems.
The increase in business volume this year was driven by the data center business, which includes artificial intelligence. This segment generated revenue of $14.51 in the third quarter.
After tremendous growth in 2023, the market value rose to more than $1,000 billion.
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