Nvidia’s third-quarter results showcased record-breaking growth as the demand for its AI-focused computer chips continues to soar. For the quarter ending October 27, 2024, Nvidia reported a revenue of $35.08 billion, marking a 94% increase from $18.12 billion a year ago. Net profit more than doubled to $19.31 billion, compared to $9.24 billion in the same period last year.
Adjusted earnings stood at $0.81 per share, surpassing Wall Street’s expectations of $0.75 per share on revenue of $33.17 billion, according to FactSet. Despite the stellar performance, Nvidia’s stock dipped 1% in after-hours trading, though it remains up 195% year-to-date.
AI Boom Powers Nvidia’s Growth
CEO Jensen Huang attributed the results to the growing adoption of AI technologies, saying, “The age of AI is in full steam, propelling a global shift to Nvidia computing.” The company’s data center revenue surged 112% to $30.8 billion, fueled by strong demand for its Hopper GPUs used in generative AI and large language models.
Nvidia also announced fourth-quarter revenue guidance of $37.5 billion, slightly above analysts’ expectations of $37.09 billion.
Blackwell GPU Demand Outpaces Supply
Investors and analysts were keenly watching updates on Nvidia’s Blackwell GPU, a next-generation AI chip with high demand from AI-focused companies like OpenAI. Nvidia CFO Colette Kress confirmed that Blackwell shipments would begin in the fourth quarter of fiscal 2025 and ramp up through fiscal 2026.
“Demand for Blackwell is expected to exceed supply for several quarters,” Kress noted, highlighting the intense competition among companies to bring AI data centers online.
Gaming Revenue and Future Prospects
While Nvidia dominates the AI market, its gaming segment also showed growth, with revenue rising 15% year-over-year to $3.3 billion. Huang emphasized the company’s strong position in the AI revolution, stating, “The age of AI is upon us, and it’s large and diverse.”
Analysts remain optimistic about Nvidia’s future, with predictions of a $4 trillion market cap by 2025. “This is just the beginning of the AI revolution,” said Dan Ives of Wedbush Securities.
Key Takeaways:
- Nvidia’s Q3 revenue soared 94% year-over-year, driven by AI chip demand.
- Data center revenue hit $30.8 billion, up 112% from last year.
- Blackwell GPUs face supply constraints but are expected to drive long-term growth.
- Gaming revenue grew 15%, showing balanced performance across sectors.
- Nvidia’s valuation could reach $4 trillion by 2025, according to analysts.
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