Nvidia’s Third-Quarter Earnings Surpass Expectations

Nvidia reported third-quarter earnings that exceeded expectations. The company continues to grow rapidly, as does the demand for its AI chips.

Key figures:

• Revenue of $35.08 billion versus the expected $33.16 billion;
• Net profit rose to $19.3 billion from $9.24 billion a year earlier;
• The company plans to achieve approximately $37.5 billion in the fourth quarter.

The chipmaker’s revenue increased by 94% year-on-year compared to the third quarter of 2023. The forecast for the next reporting period suggests a 70% growth. There is a consistent slowdown in sales growth, as previous figures were 122%, 262%, 265%.

In August, Nvidia reported revenue of $30.04 billion for the second quarter against the expected $28.7 billion. 

The firm’s shares fell by 2.5% in after-hours trading.

Nvidia shares. Data: Yahoo Finance.

Nvidia has benefited from the artificial intelligence boom, as its chips are in high demand among AI startups. The stock price has nearly tripled over the past year.

In June, it became the largest company in the world for the first time.

In September, Elon Musk’s startup xAI launched the largest AI training cluster Colossus using 100,000 H100 graphics processors.

Meta is developing a similar system.

Nvidia clients like Microsoft, Oracle, and OpenAI have begun receiving the new Blackwell chip. CFO Colette Kress noted that 13,000 samples have been sent. 

“Every client is racing to be first to market. Blackwell is in the hands of all our major partners. They are working on building data centers,” she emphasized.

Deliveries will increase next year. The company plans to earn several billion dollars from Blackwell in the fourth quarter.

“Blackwell production is in full swing. This quarter, we will deliver more chips than previously anticipated,” remarked Nvidia CEO Jensen Huang.

Earlier, hedge fund Elliott Management claimed that Nvidia is “in a bubble,” and the AI technology driving the company’s stock price is “overvalued.”

Back in June, the chip developer announced a new chip architecture for training artificial intelligence models called Rubin.