Nvidia, the world’s top tech company by market cap, delivered blockbuster third-quarter earnings, fueled by skyrocketing demand for its AI chips. However, despite beating Wall Street estimates, the company’s stock faced a dip as investors weighed future challenges.
- Earnings Beat Expectations:
- EPS of $0.81 vs. the expected $0.74.
- Revenue of $35.1B exceeded projections of $33.2B.
- Strong Guidance for Q4:
- Anticipates $37.5B in revenue, slightly above Wall Street’s $37B estimate.
- AI Chips Driving Revenue:
- Data Center revenue surged to $30.8B, a 112% jump from $14.5B last year.
- The gaming division earned $3.3B, surpassing expectations of $3B.
- CEO Highlights AI Revolution:
- Jensen Huang called this the “age of AI.”
- Blackwell and Hopper AI chips are fueling the demand surge.
- Stock Performance:
- Stock dipped 3% in premarket trading on Thursday.
- Shares have soared 192% year-to-date, far outperforming rivals AMD (-5%) and Intel (-52%).
- Geopolitical Concerns:
- Potential tariffs from Donald Trump could impact Taiwan-made chips.
- Nvidia’s reliance on Taiwan’s TSMC for chip production could raise costs.
Nvidia continues to dominate the AI landscape, setting new benchmarks in revenue and growth. However, geopolitical uncertainties and supply constraints could test its resilience in the months ahead.
