NVIDIA Releases Its Financial Results for Third Quarter Fiscal 2019

cageymaru

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NVIDIA has reported revenue for the third quarter that ended on October 28, 2018, of $3.18 billion, up 21% from $2.64 billion a year earlier, and up 2% from $3.12 billion in the previous quarter. CNBC is reporting that NVIDIA shares are down 18% in after hours trading, after the miss on revenue, as analysts predicted $3.24 billion. NVIDIA expects $2.70 billion in revenue in the fiscal 4th quarter and that is below the Refinitiv consensus estimate of $3.40 billion. The NVIDIA gaming business did not meet FactSet consensus estimates.

"AI is advancing at an incredible pace across the world, driving record revenues for our datacenter platforms," said Jensen Huang, founder and CEO of NVIDIA. "Our introduction of Turing GPUs is a giant leap for computer graphics and AI, bringing the magic of real-time ray tracing to games and the biggest generational performance improvements we have ever delivered.

"Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected. Our market position and growth opportunities are stronger than ever. During the quarter, we launched new platforms to extend our architecture into new growth markets -- RAPIDS for machine learning, RTX Server for film rendering, and the T4 Cloud GPU for hyperscale and cloud."
 

Chunder

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Over 16% drop? Good! Serves them right for charging such ridiculous prices on GPU's that are dying and/or were shipped with Micron memory before their better Samsung memory was up to yield. Among other typical shenanigans that Nvidia loves to do. If only AMD and Intel had high-end GPUs to really punish Nvidia.
 

iamjanco

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Interesting info that came out of today's NVDA quarterly report (other analysts pretty much reported similar information). While Huang stated he expected clearance of the excess Pascal inventory by the end of the fourth quarter, the current lack of available PASCAL gaming cards might indicate otherwise. Notice, I said might.

In any event, we pretty much already heard about the excess PASCAL inventory earlier on.
 

lostin3d

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Losing track of all the theories as to pricing for RTX series.

1. Deliberate to cause people to buy up old Pascal stock.
2. Pay for R&D of RTX
3. Pay for performance increase/options of RTX
4. See how much they could get away with.

Well regardless if they had offered at more reasonable prices it still wouldn't have mattered since they can't even ship enough to maintain sale stocks. So in the end it's blowing up in NV's and some users faces. Way to go Jensen.

Since RTX works best on wet surfaces maybe someone do a motion capture ray traced gif of Jensen's sweaty face as he explains all this at the next stockholder meeting.
 

PeaKr

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Too bad the crypto bubble popped. Analysts should have seen that one months ago. Nvidia went the same direction Apple did, raise prices to make up for the loss in units sold.
 

Spidey329

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Losing track of all the theories as to pricing for RTX series.

1. Deliberate to cause people to buy up old Pascal stock.
2. Pay for R&D of RTX
3. Pay for performance increase/options of RTX
4. See how much they could get away with.

Well regardless if they had offered at more reasonable prices it still wouldn't have mattered since they can't even ship enough to maintain sale stocks. So in the end it's blowing up in NV's and some users faces. Way to go Jensen.

Since RTX works best on wet surfaces maybe someone do a motion capture ray traced gif of Jensen's sweaty face as he explains all this at the next stockholder meeting.
My guess would be that it was priced higher because the new setup didn't have very good yields (new designs usually don't). So they brought it to market at a higher price to match what they could produce until the yields (and production) got better. If timed right, the efficiency gain would come around the time AMD launches something and a price drop could be used to match or deflate their sails (and sales).
 

nightanole

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Meh its after hours trading, its the wild wild west with very very few offers. It could be just a few hundred people selling their bet options. My company did something similar, but its a very low volume stock, so there was like 1 offer that was 20% under closing price, it opened the next day green...
 

Azphira

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My EVGA 2080ti FTW3 Ultra has been fine so far, and it's miles better than my 1080 sli was.
 

dkapke

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My EVGA 2080ti FTW3 Ultra has been fine so far, and it's miles better than my 1080 sli was.
Ha! I did the same upgrade - SLI 1080s to the FTW3 2080 Ti. I wouldn't say it's "miles" better. I'm actually seeing the same performance - maybe a few % higher FPS in games that supported SLI. But, I somehow managed to sell each of the 1080s for $400 and I'm drawing half the power that I was before so...I guess it's a win in that the 2080 Ti only cost me $500 and maybe I get an ROI in power saved in a year or so. But, I don't have to worry about those games that don't support SLI and FC5 actually seems to love the 2080 Ti in that the benchmark, while having the same average FPS, is FAR more steady/consistent and not nearly as choppy as the SLI'd 1080s and gameplay just seems more smooth.
 

Stoly

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I can't remember the last time nvidia didn't post a record profit or at least not meeting or beating analysts projections.

Still very good numbers, yet stock went down. Go figure. Great time to buy stock though
 

defaultluser

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I was hoping to pick up a 1060 6GB for $200 (to match the RX 580 8GB sale prices ($230 MSRP, with a lot of deals at $200)),

But since Nvidia is sitting on it's golden goose the 1060 at MSRP for two and a half years now, I'm just going to wait these fuckers out.

Luckily for ,me, I have zero demanding games that captured my interest this year, so at this point it would just be satisfying that upgrade itch. But Doom wilkl require an upgrade for me net year.
 

jnmunsey

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I get why some of you guys are happy, but a lot regular people like you and me are losing a lot of money, myself included. Nvidia is doing just fine regardless of the stock price. In fact they'll be buying back billions now that the price has dropped a lot.
 

jnmunsey

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Meh its after hours trading, its the wild wild west with very very few offers. It could be just a few hundred people selling their bet options. My company did something similar, but its a very low volume stock, so there was like 1 offer that was 20% under closing price, it opened the next day green...
Share volume of Nvidia for trading on Thursday: 21,017,716
Share volume of Nvidia for trading after hours : 7,497,702

Pretty sure this drop is legit. The guidance was pretty terrible. Hopefully it doesn't drop too much more. It's going to to take around 6 months before this inventory problem sorts itself out.
 

lostin3d

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Ha! I did the same upgrade - SLI 1080s to the FTW3 2080 Ti. I wouldn't say it's "miles" better. I'm actually seeing the same performance - maybe a few % higher FPS in games that supported SLI. But, I somehow managed to sell each of the 1080s for $400 and I'm drawing half the power that I was before so...I guess it's a win in that the 2080 Ti only cost me $500 and maybe I get an ROI in power saved in a year or so. But, I don't have to worry about those games that don't support SLI and FC5 actually seems to love the 2080 Ti in that the benchmark, while having the same average FPS, is FAR more steady/consistent and not nearly as choppy as the SLI'd 1080s and gameplay just seems more smooth.
Good to know. Been very difficult to find comparison reviews showing these details. Sure everyone craps on SLI, complications, power/heat, support, etc. but bottom line is that when the leaked numbers for the 2080TI came out I immediately reran benches and 3d mark on my 1080SLI and the numbers were nearly the same. Posts like ours clearly show there were a number of people of SLI'd 1080's last gen. My reasons for wanting a 2080TI are the same as yours. I was hoping for a bit more of a performance gain than a couple of fps but looking forward to the simplicity of it all. Still eyeing the Strix for me though.
 

Inacurate

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This is why I dislike our market and blind focus on capitalism and the need for a public company to please two bases...the actual customers and shareholders.
Ha, maybe Epic Games needs to study this phenomena and apply what they learn to Fortnite and the skilled vs casual game changes debate.

They missed expectations by $60,000 and that's enough for an 18% hit after hours?

That's ~50 sales of the 2080 Ti.
That's ~two days (averaged) worth of overall sales in a 90 day period.

The "market" did more than $60,000 worth of loss after hours just to the company, never mind shareholders.

That's bullshit IMO.

Losing track of all the theories as to pricing for RTX series.

1. Deliberate to cause people to buy up old Pascal stock.
2. Pay for R&D of RTX
3. Pay for performance increase/options of RTX
4. See how much they could get away with.
5. They knew of reliability issues in certain SKUs before release, willfully limited supply and choose to proactively recoup some of the eventual losses knowing their expected buyers would plop down the cash no matter what?

:ROFLMAO::ROFLMAO::ROFLMAO::cat:

I don't put a lot of weight into something I thought up 15 seconds ago, but at the same time...it's an easy theory to jump to with how shady they've been acting lately and I have no confidence the thought isn't true exactly because of their long history of how they go about raking up their piles of cash.

This is how your reputation influences what others think about you kids, so always try to "don't be evil" ...unless your Google!
 

thekipper

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Pulling AMD down with it but the bigger story is overall market weakness. We're due for a recession.
 

nightanole

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Pulling AMD down with it but the bigger story is overall market weakness. We're due for a recession.

Meh it may end up pulling an obama and having a 3-4 year streak of zero gains other than divi reinvestment. Are we even breaking even after today from jan 1st? we were only up 2.4% before this week.

Doesnt matter, i lost my ass on MU. Bought at $52, it cratered to $35 in less than 30 days. Panic sold because now im down to principle, then MU buys over 500 mill worth cuz stock is cheap, and it rallys to $41 in 2 days after i sell...
 

thekipper

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Meh it may end up pulling an obama and having a 3-4 year streak of zero gains other than divi reinvestment. Are we even breaking even after today from jan 1st? we were only up 2.4% before this week.

Doesnt matter, i lost my ass on MU. Bought at $52, it cratered to $35 in less than 30 days. Panic sold because now im down to principle, then MU buys over 500 mill worth cuz stock is cheap, and it rallys to $41 in 2 days after i sell...

Unless you're right on the doorstep to retirement, stay calm. I panic sold one time and lesson learned. I think markets are close to 0 or for 2018 now. One could view MU as very undervalued right now.

My portfolio is quite ugly right now.
 

Nova88

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Same thing is happening with blizzard/activision. Protip for companies: don't neglect that thing that made you what you are. Nvidia tries to mess with their core gaming gpu business, releasing a lackluster chip at 2x price and surprise surprise, not many people bought them and their stock is currently 168 when a month ago its was over 268. Blizzard messes with its core pc game development and focuses on a product that is a super low budget outsourced mobile title and ignores customer backlash. A month or so ago they were at 83 but right now they are at 53.

I love seeing this sort of poetic justice. The guys who go the greedy route and flip the bird to their customers get way more than they bargained for, resulting in losing almost 50% stock value over a couple months.
 

thekipper

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It's the overall sector and market, not just Activision. EA is sitting mid 80's right now after hitting 120 or so in July. Tech getting hit hardest but rest of market struggling also. AMZN down 15% in last 3 months, still up for the year.
 

oopspowsurprise

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I recall seeing a chart that a high percentage of Nvidia's profits come from consumer card sales. They raise the prices of their cards, who will buy? Are people getting salary increases? Are they trying to pull an Apple? Raise prices to compensate for fewer unit sales?

You see AMD has not released a kick-ass card in like forever. I think I remember from one of Adoredtv's videos how Jim mentioned that AMD abandoned the consumer gpu market. You look at an in-process reformation of AMD and how they are making the big push to enterprise.

The future is the enterprise. Can't afford a quality GPU for your home PC? Get a subscription for cloud gaming (Gaming as a service). This way all the processing is handled on the cloud (in an enterprise environment) and you don't need to pay high upfront hardware GPU costs.
 

tempertantrum

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I get why some of you guys are happy, but a lot regular people like you and me are losing a lot of money, myself included. Nvidia is doing just fine regardless of the stock price. In fact they'll be buying back billions now that the price has dropped a lot.
But... you haven't lost unless you've actually sold the stock. If they are really doing fine, then just hold onto it, it will bounce back.
 

HockeyJon

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Interesting info that came out of today's NVDA quarterly report (other analysts pretty much reported similar information). While Huang stated he expected clearance of the excess Pascal inventory by the end of the fourth quarter, the current lack of available PASCAL gaming cards might indicate otherwise. Notice, I said might.

In any event, we pretty much already heard about the excess PASCAL inventory earlier on.
I think he’s more referring to the secondary market now that mining has become a non factor.
 

HockeyJon

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I get why some of you guys are happy, but a lot regular people like you and me are losing a lot of money, myself included. Nvidia is doing just fine regardless of the stock price. In fact they'll be buying back billions now that the price has dropped a lot.
If you’re long Nvidia, and really believe in the company, then this is a gift. You get a deep discount to accumulate more shares. It’s only a problem if you have to sell.
 

Archaea

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Stock doesn’t have to go up.
I remember a lot of years in there were Nvidia was top player and their stock still dabbled around 20 bucks a share. It wasn’t until late 2015 it broke that trend and went crazy. Long term, blind loyalty hold on Nvidia at current prices?......that’s risky business IMO.
 

Mega6

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Got killed, caught the Nv downward knife at 210 - half way. Nv realistic price is about 200 now i estimate. Just need time to hang on for profits. Bought AMD at 10-14 and yes even a little at 9. Got out of AMD (mostly) at 25 after a year of (nothing) 10-14 range.
 
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