Nvidia (NVDA) announced its third-quarter results after the bell on Wednesday, showing that the company’s high-performance AI chips will accelerate what CEO Jensen Huang called the “age of AI.” Sales exceeded expectations due to strong sales.
Nvidia, the world’s largest publicly traded company by market capitalization, reported earnings per share (EPS) of $0.81 and revenue of $35.1 billion. Analysts had expected EPS of $0.74 and revenue of $33.2 billion.
Nvidia also said it expects fourth-quarter revenue to be $37.5 billion, plus or minus 2%. This is slightly higher than Wall Street’s estimate of $37 billion.
Nvidia’s stock seesawed Thursday morning, soaring to intraday highs before hovering around the sidelines as investors weighed the forecast.
Check out Dan Howley’s Reddit AMA for Nvidia’s latest earnings report.
“The era of AI is in full swing, driving the global transition to Nvidia computing,” Huang said in a statement. “As foundational model makers scale pre-training, post-training, and inference, the demand for Hopper and the expectations for Blackwell will be incredibly high at full capacity.”
The semiconductor giant’s data center business, which accounts for the bulk of its sales, generated $30.8 billion in revenue in the quarter, beating analysts’ estimates of $29 billion and up from the $14.5 billion the division earned in the third quarter of last year. This was an increase of 112% compared to the previous year.
Nvidia’s gaming revenue was $3.3 billion, up from $2.8 billion for the division last year. Analysts had expected $3 billion.
NVIDIA stock continued to soar throughout 2024, thanks to the explosive growth of AI in technology and other fields.
Read more: Nvidia’s value nearly triples in 11 months: Is it time to invest?
Nvidia also appears to be trying to allay concerns about a potential decline in the availability of next-generation Blackwell chips, with CFO Colette Kress saying that AI GPUs will start shipping this quarter and will be in full production next year. He said it is scheduled to be shipped in.
“Both Hopper and Blackwell systems have certain supply constraints, and we expect Blackwell demand to exceed supply for several quarters in fiscal 2026,” he added.
Read more: How does Nvidia make money?
Nvidia’s stock price has risen 192% since the beginning of the year as of Wednesday, easily outperforming the company’s rival chipmakers. Shares of its closest competitor, AMD (AMD), have fallen more than 5% since the beginning of the year, and shares of Intel (INTC), which is struggling to turn around, have fallen nearly 52%.
Nvidia faces an uncertain future given President Donald Trump’s threat to impose blanket tariffs on products around the world.
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