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Key takeaways

  • Nvidia beat analysts’ forecasts for both profit and revenue in its third-quarter report.
  • Strong demand for AI chips drove significant growth in Nvidia’s data center operations.
  • Nvidia expects revenues of $65 billion (approximately €56.4 billion) and continues to invest in robotics as a key growth area.

Nvidia surpassed Wall Street’s profit and revenue expectations when it released its third-quarter report, sending its share price soaring. The company’s strong performance was driven by overwhelming demand for its artificial intelligence (AI) chips, which are crucial components in developing new AI models across various industries.

AI chips

Nvidia’s net profit rose sharply year-over-year to $31.91 billion (about €27.7 billion), or $1.30 (€1.13) per share. This growth was mainly attributed to the company’s data center segment, with revenue up 66 percent compared to the same period last year.

Jensen Huang, CEO of Nvidia, said the company is seeing significant demand for its AI chips, addressing concerns over a possible “AI bubble.” He highlighted strong sales of the GB300 chip and noted that Nvidia’s best-selling chip family is now the Blackwell Ultra, a second-generation version of its Blackwell chips.

The company’s financial results are in line with recent reports from other tech giants such as Microsoft, Meta, Amazon, and Alphabet, all of which have increased their capital expenditure forecasts amid ongoing investments in AI.

Growth across all segments

Nvidia also reported strong performance in its gaming and professional visualization arms. Gaming sales rose 30 percent year-over-year, while professional visualization sales jumped 56 percent, thanks to the success of the DGX Spark AI desktop.

Looking ahead, Nvidia forecasts revenue of about $65 billion (approximately €56.4 billion) for the current quarter, exceeding analysts’ expectations. The company continues to invest in robotics as a key growth area, reporting a year-over-year increase of 32 percent in automotive and robotics sales.

Geopolitical Challenges

While Nvidia has expressed disappointment at being limited in shipping current-generation Blackwell chips to China due to geopolitical factors and rising competition, it remains optimistic about future growth prospects. The company’s strong financial position is further underscored by its share buybacks and dividend payouts during the quarter.

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