Nvidia’s AI Chip Boom: Q3 Revenue Skyrockets 94% to $35.08 Billion
Staff Editor Nvidia Surges on AI Chip Demand, Reports Stellar Q3 Earnings
Nvidia Corporation, the leading graphics chip manufacturer, has reported exceptional growth in its third-quarter profit and sales, driven by soaring demand for artificial intelligence (AI) chips. The company’s revenue for the quarter reached $35.08 billion, marking a staggering 94% increase from the previous year.
The tech giant’s net earnings more than doubled to $19.31 billion, surpassing Wall Street expectations. Nvidia’s adjusted earnings per share stood at 81 cents, exceeding the anticipated 75 cents. Despite these positive results, Nvidia’s stock experienced a slight dip in after-hours trading.
Looking ahead, Nvidia projects fourth-quarter revenue to grow to $37.5 billion, aligning with analyst forecasts. The company’s stock has demonstrated remarkable performance, surging 195% this year, reflecting strong market confidence in its growth trajectory.
CEO Jensen Huang emphasized the ongoing AI revolution and Nvidia’s pivotal role in driving technological advancements. The company’s data center revenue increased by an impressive 112%, fueled by demand for AI platforms like Hopper.
Nvidia is gearing up for the launch of its next-generation Blackwell GPU, with production shipments set to commence in fiscal 2025. The company anticipates strong demand for Blackwell, potentially exceeding initial supply estimates.
The tech firm’s strategic investments in AI and GPU technology have solidified its position as a market leader. Nvidia’s invention of GPUs in 1999 revolutionized PC gaming and computer graphics, and the company continues to benefit from these early innovations.
With a market capitalization exceeding $3.5 trillion and analysts projecting potential growth to $4 trillion by 2025, Nvidia’s earnings report is viewed as a testament to the ongoing AI revolution. Despite its high stock valuation, the company’s growth prospects remain robust, driven by continuous advancements in AI technology.
