Nvidia leads the profitability race in the semiconductor industry, outperforming rivals with impressive earnings for the third quarter.
The US tech giant revealed third-quarter revenue of $18.12 billion and profit of $10.42 billion. The results marked a 206% year-over-year (YoY) climb, mainly driven by Nvidia’s focus on artificial intelligence (AI) chips amid the ongoing surge of generative AI.
However, Nvidia shares closed 1.93% lower at $477.76 and declined by 0.01% to $477.71 in after-hours trade. Its competitor, Intel, rose by 0.66% to $43.96, while Taiwan Semiconductor Manufacturing Company (TSMC) eased by 0.83% to $97.83.
Despite the shares in the California-based AI chip company dipping, its latest earnings tops semiconductor industry profitability, placing it ahead of rivals.
Taipei-based financial researcher Dan Nystedt recognized Nvidia’s massive jump from its first-quarter position, citing success from solid AI data center chips sales.
The firm’s Data Center unit has significantly propelled that growth, leveraging Nvidia’s broad intellectual property portfolio despite its dependence on TSMC for chip production.
As the tech giant revels in a prosperous quarter, Samsung Semiconductor grapples with a revenue drop to $12.52 billion and a $2.86 billion loss.
The memory market downturn has weighed on Samsung Electronics’ semiconductor arm. Still, it is making progress with rebounding by releasing the LPDDR5X DRAM and advanced high-performance computing (HPC) chip production led by Ki-bong Jeong.
On the other hand, TSMC generated significant revenue of $17.28 billion and a profit of $7.21 billion in the third quarter. Intel, however, saw its revenue lose $8 million to end up at $14.16 billion in the quarter.
Nvidia Reportedly Postpones China-Focused H20 Chip Release
Nvidia remained resilient despite the reported postponement of the release of its China-focused AI chip, H20.
The H20 chip, one of the three chips designed for the Chinese market, is the most powerful chip created by the software giant to adhere to new US export rules.
Sources familiar with the matter said the delay may make preserving market share in China against local competitors like Huawei more challenging for Nvidia.
According to reports, the tech giant had been expected to release the new products as soon as November 16. However, due to server manufacturers’ issues integrating the chip, H20 will be launched in February or March next year instead.
Nvidia also aims for the L20 and L2 chips to meet US export restrictions. The sources stated that L20’s roll-out was not facing any delays and is set to launch as initially planned, while L2’s status has yet to be known.
