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Big Highlights From Nvidia's Q3 Earnings Report

By Rachel Warren and Jose Najarro – Dec 9, 2021 at 7:00AM

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Despite ongoing supply chain shortages, it was another record quarter for the chipmaker.

Nvidia (NVDA -2.62%) beat expectations in its most recent earnings release. The high-flying tech stock has seen shares soar more than 130% since the beginning of this year alone. In this segment of Backstage Pass, recorded on Nov. 17, Fool contributor Jose Najarro goes over the key points investors need to know from the company's third-quarter earnings report.

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Jose Najarro: Then taking a quick look at the video they just reported earnings right now after the market closed and the stock price is up 4.2% right now. Let me just share the screen with you guys. Right now, quarter three revenue was $7.1 billion. This was up 50% year-over-year.

This did beat expectations. Analysts were expecting somewhere around $6.8 billion. So it was a nice beat there. Earnings per share were $1.17 up 60% year-over-year, analysts were expecting somewhere around $1.11. Another strong growth there, I think what's super-exciting is their outlook quarter for they expect about $7.4 billion in revenue for that quarter. 

That's up another again, almost 50%, 48% at that point. This was guidance raised. They did mention one of the biggest grower where they saw a lot more customers in the data center.

Data center mix up $2.9 billion out of that $7.1 billion and that grew the most monetary-wise. It grew about $1 billion year-over-year and about $600 million quarter-over-quarter. 

This is the main reason the company was able to beat that expectation. It seems like analysts were expecting, not analysts, investors were expecting this growth because this company showed strong outlook for the quarter. They also showed beat on expectations and the company, up 4%.

In my opinion, if there was another company and analyst investors weren't expecting this, the stock-price would've gone up a lot higher. Their gaming is still huge. A huge portion of revenues is about $3.2 billion. That was also up year-over-year, quarter-over-quarter.

Jose Najarro owns shares of Nvidia. Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nvidia. The Motley Fool has a disclosure policy.

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