Nvidia reports impressive earnings

Nvidia earnings and BoC Macklem speech take center stage

By Nadia Elbilassy | @Nadia Elbilassy | 22 November 2023

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  • Nvidia exceeded Q3 expectations with $4.02 EPS and $18.12 billion revenue.

  • The company’s Q4 outlook predicts $20 billion revenue, but China export restrictions contribute to share downturn.

  • The Canadian dollar holds at 1.3700 despite softer inflation easing to 3.1% in October.

On the Market Watch!

Nvidia Q3 earnings

Nvidia delivered impressive third-quarter results overnight, surpassing expectations with adjusted earnings per share (EPS) at $4.02 and revenue totaling $18.12 billion. Mainly over strong performance with demand for AI-driven chips, particularly in the high-margin data center segment.

The estimates according to analysts’ expectations projected EPS of $3.36 on revenue of $16.18 billion.

In the fiscal fourth quarter outlook, Nvidia anticipates revenue around $20 billion This forecast exceeds analyst predictions which is estimated to be at $17.91 billion. The robust guidance contrasts with potential revenue challenges in China, which is expected to be affected due to U.S. export restrictions on AI chips to China.

USD/CAD

The Canadian dollar is holding firm around the significant 1.3700 level, despite recent indications of softer inflation in Canada, raising the possibility of a more dovish stance from the Bank of Canada (BoC).

The annual inflation growth in Canada slowed to 3.1% in October, down from 3.8% in September, while the core index recorded 2.7%, compared to 2.8%.

On the calendar, BoC Governor Tiff Macklem's is scheduled to have a speech today which will be closely watched as analysts have started predicating a potential cumulative rate cut of around 80 basis points by December 2024, with expectations of policy easing to commence between April and June.

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