- Nvidia’s Q3 revenue soared to $35.08 billion, up 94% YoY, surpassing estimates.
- Blackwell AI chips are in high demand, expected to exceed supply through fiscal 2026.
- CEO Jensen Huang remains optimistic about the AI boom despite market volatility.
- Trump’s proposed tariffs on Taiwan-made chips could significantly impact Nvidia’s supply chain.
- Nvidia stock fell 17% Monday due to the DeepSeek AI model’s market disruption.
Nvidia’s AI Boom Continues Amid Market Uncertainty
Nvidia (NASDAQ: NVDA) reported another strong quarter on Wednesday, exceeding analyst expectations as demand for its AI chips continues to soar. The company’s third-quarter revenue reached $35.08 billion, a 94% year-over-year increase, beating Wall Street’s estimate of $33.25 billion.
CEO Jensen Huang reinforced the company’s dominance in AI, stating that “the age of AI is in full steam” and that demand for Nvidia’s Hopper and Blackwell chips remains “incredible.”
Nvidia’s fourth-quarter revenue forecast of $37.5 billion (±2%) met market expectations but failed to surpass the most bullish estimates, causing minor after-hours volatility.
Blackwell AI Chips in High Demand
Nvidia’s next-generation Blackwell AI chips are set to replace the widely used Hopper chips in major AI models. Huang noted that demand is “coming from a lot of different places,” with major tech firms scaling AI training, inference, and post-training models.
Nvidia CFO Colette Kress warned that Blackwell demand will exceed supply for several quarters into fiscal 2026, potentially leading to short-term margin pressures.
Despite the strong demand, Nvidia stock fell 17% on Monday after China’s DeepSeek AI announced its low-cost model that rivals OpenAI’s GPT-4, sparking fears that AI computing costs may drop faster than expected.
Trump’s Taiwan Tariffs: A Major Risk for Nvidia
President Donald Trump’s proposal to impose tariffs of up to 100% on Taiwan-made semiconductors has raised significant concerns for Nvidia, which relies heavily on Taiwan Semiconductor Manufacturing Company (TSMC) for its advanced AI chips.
Potential Impact on Nvidia:
- Higher chip production costs if Nvidia shifts manufacturing to the U.S.
- Increased prices for AI hardware like GPUs, potentially affecting demand.
- Delays in AI chip production, impacting tech giants relying on Nvidia’s products.
While Trump argues that tariffs would encourage domestic chip manufacturing, experts warn that the U.S. chip sector lacks Taiwan’s efficiency and could take years to catch up.
Huang acknowledged the uncertainty surrounding Trump’s tariff plans, stating that Nvidia is “taking things one quarter at a time” and will fully comply with any new regulations.
Stock Performance and Outlook
Despite recent volatility, Nvidia’s stock remains up 194% in 2024, making it one of the best-performing tech stocks of the year.
However, with:
- DeepSeek’s AI breakthrough shaking investor confidence,
- Trump’s Taiwan tariffs posing supply risks, and
- Nvidia’s Blackwell demand exceeding supply,
the road ahead for Nvidia remains uncertain.
Investors will closely watch AI chip demand, supply chain developments, and potential policy changes as Nvidia navigates a shifting global landscape.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Source: Business Insider: Nvidia earnings recap & Trump’s Taiwan tariffs
Related articles:
What Is DeepSeek and Why Is It Crashing AI Stocks?
DeepSeek shows how Trump tariffs doomed to fail
DeepSeek Causes $1 Trillion Drop in Tech Stocks
Why market panic over China’s DeepSeek is ‘overblown,’ analysts say
DeepSeek ban coming soon? White House “looking into” national security implications of it
CEO of Scale AI Says DeepSeek is Lying to Everyone
