NVIDIA's Q3 report highlighted substantial growth driven by increased demand for AI chips.
Revenue Growth Driven by AI
NVIDIA's Q3 revenue reached $35.1 billion, surpassing predictions of $33.2 billion. This growth, driven by demand for AI chips, marks a 94% year-over-year increase. Their data center business contributed significantly, generating $30.8 billion, double that of last year. Gaming revenue also rose to $3.3 billion from $2.8 billion last year. It's clear that AI is a major factor in NVIDIA's growth across various sectors.
Strong Company Forecasts
NVIDIA is optimistic about the fourth quarter, expecting revenue around $37.5 billion, slightly above Wall Street's estimates. Products like the Blackwell chip are already gaining attention, with demand expected to exceed supply well into the foreseeable future. NVIDIA's ability to meet global AI demand will be crucial for its long-term success.
NVIDIA Stock Fluctuations
Despite the stellar earnings report, NVIDIA's stock fell 2% in after-hours trading. During regular trading, it had already dipped by 1%. Investors may have reacted to high expectations or slight supply constraints. However, this dip is minor amid NVIDIA's remarkable 2024 performance, with its stock surging 192%.
Despite potential challenges like chip tariffs from Taiwan, NVIDIA continues to lead in the AI era, remaining at the forefront of industry transformation.
