NVIDIA conference call update: Affected sales from U.S. export curbs to be more than offset by strong growth in other regions (499.44 -4.65)
- Vast majority of revenue in Q3 was driven by the NVIDIA HDX platform based on Hopper GPU architecture.
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Data Center compute revenue quadrupled from last year and networking revenue nearly tripled.
- Consumer internet companies and enterprises drove exceptional sequential growth in Q3, comprising approximately half of data center revenue and outpacing total growth.
- Companies like Meta are in full production with deep learning systems and investing in generative AI to help advertisers optimize images and text.
- Demand was strong from all hyperscale CSPs as well as a broad set of GPU specialized CSPs.
- Increased supply every quarter this year and expect to continue to do so next year.
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Sales to China and other affected destinations from U.S. export curbs subject to licensing requirements have consistently contributed approximately 20% to 25% of data center revenue over the past few quarters.
- Expect sales to these estimations will decline significantly in Q4, but believe it will be more than offset by strong growth in other regions.
- Working with some customers in China and the Middle East to pursue licenses from the U.S. government. Too early to know whether these will be granted for any significant amount of revenue.
- On track to exit the year at an annualized revenue run rate of $1 billion for recurring software support and services offerings.
- Gaming has doubled relative to pre-COVID levels and against the backdrop of lackluster market performance.
- Continue to make progress on Omniverse
- Expect sequential growth in Q4 to be driven by data center with continued strong demand for compute and networking. Gaming will likely decline sequentially, as it is now more aligned with network seasonality.