Nvidia Aided by Recovering Cloud-Computing Demand
15 November 2019 - 9:42AM
Dow Jones News
By Asa Fitch
Nvidia Corp. signaled the prospects for sales from its gaming
and cloud-computing operations were improving, even as it posted a
fourth-straight quarter of lower earnings.
The Santa Clara, Calif.-based company Thursday said revenue from
its data-center segment, which makes chips used in cloud-computing,
improved sequentially in its fiscal third quarter. Still,
data-center revenue fell 8% compared with the year-ago period.
Gaming revenue, which made up more than half of overall sales, also
fell by 6% compared with last year, although it rose considerably
compared with the second quarter.
Nvidia reported a 27% drop in net income to $899 million.
Adjusted earnings per share, the chipmaker's more closely watched
earnings measure, fell to $1.78 from $1.84 a year ago, well above
the $1.58 analysts surveyed by FactSet expected.
The company last year enjoyed strong sales in its third quarter,
driven both by customers in China, who placed orders ahead of
looming tariffs on some U.S. goods, and by demand for chips used
for cryptocurrency mining. Without those benefits, Nvidia's sales
fell to $3.01 billion in the quarter ended Oct. 27, down from $3.18
billion a year ago and above analysts' projections.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
November 14, 2019 17:27 ET (22:27 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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