Nvidia earnings/ AI chip market/ Blackwell GPUs/ Nvidia stock performance/ Jensen Huang Nvidia/ SANTA CLARA/ Calif./ Newslooks/ J. Mansour/ Morning Edition/ Nvidia reported stellar third-quarter earnings with $35.08 billion in revenue, doubling its profit from last year as demand for AI-driven technologies surges. Investors eagerly await the release of the company’s Blackwell AI chips, expected to face high demand into 2026. Despite exceeding Wall Street’s expectations, Nvidia’s stock dipped 1% after-hours but remains up 195% year-to-date.
Nvidia’s AI-Fueled Earnings: Quick Looks
- Revenue Growth: Nvidia’s revenue rose 94% year-over-year to $35.08 billion, beating Wall Street’s forecast of $33.17 billion.
- Blackwell Chip Demand: Next-gen Blackwell AI chips are in limited supply, with production ramping up in fiscal 2025.
- CEO Statement: Jensen Huang declared, “The age of AI is in full steam.”
- Market Value: Nvidia now boasts a $3.5 trillion market cap, with analysts predicting $4 trillion by 2025.
Nvidia Reports $35B Revenue as Blackwell Chip Demand Soars
Deep Look
Nvidia delivered another exceptional earnings report on Wednesday, fueled by the relentless demand for its specialized AI chips. The company reported $35.08 billion in revenue for its fiscal third quarter, a 94% increase from the same period last year, and a net profit of $19.31 billion, more than doubling from $9.24 billion in 2023.
Adjusted earnings per share hit $0.81, surpassing Wall Street’s expectation of $0.75.
Data Center Dominance
Nvidia’s data center revenue soared 112% year-over-year to $30.8 billion, primarily driven by its Hopper GPUs, which power large language models, recommendation engines, and generative AI applications.
Blackwell Chips: The Future of AI Computing
Analysts and investors were keenly focused on Nvidia’s Blackwell GPU, a next-generation chip expected to dominate AI computing in the coming years. CFO Colette Kress revealed that shipments of the Blackwell chip will begin in the fourth quarter of fiscal 2025 and ramp up into fiscal 2026.
“Blackwell is now in the hands of all our major partners, and they are preparing their data centers,” Kress said.
Gaming and Beyond
While Nvidia’s focus remains on AI, its gaming revenue also climbed 15% year-over-year, reaching $3.3 billion. This growth demonstrates the company’s enduring strength in the gaming sector, a market it helped define with its pioneering GPU technology in 1999.
Market Reactions
Despite beating earnings expectations, Nvidia’s stock dipped 1% in after-hours trading, reflecting slightly tempered investor enthusiasm over its fourth-quarter guidance of $37.5 billion in revenue, just above analyst predictions of $37.09 billion.
David Volpe, senior fund manager at Emerald Insights Fund, noted, “Nvidia had a tremendous quarter, but expectations were sky-high. There’s nothing touching it in terms of growth.”
Analyst Praise
Dan Ives of Wedbush Securities described Nvidia’s performance as nothing short of extraordinary:
- “The AI revolution is still in its early innings.”
- “We view this as a Nvidia earnings press release that should be hung in the Louvre.”
- “Blackwell demand is just beginning. Nvidia’s $4 trillion market cap in 2025 seems inevitable.”
Looking Ahead
As Nvidia continues to dominate the AI chip market, its guidance for the fourth quarter signals confidence in sustained growth. With Blackwell chips poised to drive demand for years, analysts agree Nvidia remains the cornerstone of the AI revolution.
“The age of AI is upon us, and it’s large and diverse,” Huang said, encapsulating the company’s pivotal role in shaping the future of technology.
