Nvidia (NVDA) reported a big miss on both the top and bottom lines for Q3 after market close on Thursday.
The chipmaker earned $1.84 per share which was weaker than the $1.92 per share that was anticipated, according to analysts polled by Bloomberg.
This is Nvidia’s first EPS miss in 13 quarters. Shares tanked 13% in after-hours trade on Thursday. Revenue also came in worse than expected at $3.18 billion versus consensus of $3.24 billion.
Investors and analysts have been paying close attention to graphics-processing unit (GPU) sales in Q3, as this was the first earnings report since the company launched GPUs. GPU business revenue came in at $2.77 billion, which was up 25% year over year.
“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,” CEO Jensen Huang said in a statement.
Nvidia shares have been underperforming the broad market in the past year, falling nearly 5% while the S&P 500 (^GSPC) has risen 5% in the same time period. The chip giant is currently in a bear market after hitting an all-time high in early October.
Headline aside, GPU business revenue is up 25% YoY. This suggests that they're not dying but rather fell behind inflated expectations.