Nvidia Reports $35.1B Revenue, AI Boom Fuels 94% Growth

Nividia claimed its current generation of chips was in “great shape” as the world’s

most valuable firm announced another solid quarter of revenue growth driven by robust demand for the infrastructure that has powered the artificial intelligence boom.

According to a report issued on Wednesday, revenue for the quarter ending in October is  doubled from the previous year, rising 94% to $35.1 billion. It was a slower pace of increase than the previous quarter, but it still exceeded analysts’ projections of $33.25 billion.

This huge gain was supported by a 111% increase in GAAP earnings per share, which stood at $0.78 per share. Gross margins fell slightly to 74.6 percent, although even that was higher than experts expected. NVIDIA’s outstanding quarter not only exceeded expectations, but also maintained its dominance in the AI-driven technology sector.

AI Leadership Fuels Nvidia’s Record Growth

NVIDIA’s shares fluctuated slightly ahead of the earnings report, falling 1% before the announcement and another 2% after hours trading. This was largely due to investors capitalizing on the stock’s 200 percent increase since the beginning of the year. Those that have retained their shares, on the other hand, tend to believe in NVIDIA’s capacity to maintain its exceptional growth.

While there were worries about production issues and overheating in specific data center racks, the corporation handled them calmly, claiming that modest tweaks were “normal and expected.” Such promises have helped to sustain investor confidence in the company’s future.

NVIDIA’s data center sector generated $30.8 billion in revenue, accounting for a sizable portion of its total revenue. This figure comfortably exceeded some analysts’ expectations of $28 billion.

Analysts have been keeping a close eye on Nvidia’s new chip generation, known as Blackwell, to see how it affects short-term revenue growth and whether it encounters any technical issues as it is scaled up. CEO Jensen Huang stated that production was in full swing and demand remained strong.

Nvidia Earnings Ripple Through Asian Chip Market

Asian semiconductor-related equities fell sharply on Thursday after Nvidia posted profits that fell short of some investors’ high expectations.

While Nvidia’s third-quarter results exceeded analysts’ forecasts and provided a good outlook for the current quarter, its shares fell 2.5% in extended trade to around $142.20 each.

The sentiment has spread to Asia, with equities linked to Nvidia suppliers as well as other semiconductor companies largely tumbling.

For instance, Advantest, a semiconductor testing equipment supplier with clients including Nvidia, experienced a 5.6% decrease on Thursday, making it the greatest chip loser on Japan’s Nikkei 225. Taiwan Semiconductor Manufacturing Corp, which manufactures Nvidia’s high-performance graphics processing units, had a 1.5% decline.