Nvidia (NVDA) reported 3rd quarter incomes after the bell on Wednesday that covered assumptions on the toughness of sales of its high-powered AI chips sustaining what its chief executive officer Jensen Huang called the âage of AI.â
The globeâs biggest openly traded business by market cap, Nvidia reported incomes per share (EPS) of $0.81 on profits of $35.1 billion. Analysts were preparing for EPS of $0.74 on profits of $33.2 billion.
Nvidia likewise claimed it expects profits of $37.5 billion, plus or minus 2%, for the 4th quarter. Thatâs simply in advance of Wall Street assumptions of $37 billion.
Nvidiaâs supply cost dropped approximately 1% on the information.
âThe age of AI is in full steam, propelling a global shift to Nvidia computing,â Huang claimed in a declaration. âDemand for Hopper and expectancy for Blackwellâ completely manufacturingâ are unbelievable as structure design manufacturers range pretraining, post-training, and reasoning.â
The chip giantâs Data Center business, which makes up the vast majority of its revenue, brought in $30.8 billion in the quarter, beating out analystsâ expectations of $29 billion and jumping 112% versus the $14.5 billion the segment made in Q3 last year.
Nvidiaâs gaming revenue came in at $3.3 billion, up from the $2.8 billion the division brought in last year. Analysts were looking for $3 billion.
Nvidiaâs stock has continued to rocket higher throughout 2024, thanks to the explosive growth in AI across the tech landscape and beyond.
Read more: Nvidia nearly triples in value over 11 months: Is it time to invest?
Nvidia also appeared to assuage concerns about potential slowdowns in the availability of its next-generation Blackwell chip, with CFO Colette Kress saying that the AI GPU will begin shipping in the current quarter and ramp into the year ahead.
âBoth Hopper and Blackwell systems have particular supply restraints, and the need for Blackwell is anticipated to surpass supply for numerous quarters in monetary 2026,â she added.
Read more: How does Nvidia make money?
Shares of Nvidia were up 192% year to date as of Wednesday, easily outpacing any of the companyâs chipmaker rivals. AMD (AMD), the closest competitor, has seen its stock price sink over 5% year to date, while Intel (INTC), which is contending with a difficult turnaround, has seen its stock plunge nearly 52%.
Nvidia is facing an uncertain future, given that Donald Trump has threatened to put blanket tariffs on products from around the world.
In addition, the president-elect has raised the specter of tariffs on Taiwan-made chips. That would be a potential alternative to the CHIPS Act, which is designed to bring semiconductor manufacturing back to the US.
