Nvidia CEO Jensen Huang arrives at the launch of the supercomputer Gefion, at the Vilhelm Lauritzen Terminal in Kastrup, Denmark, Oct. 23, 2024.
Ritzau Scanpix | Mads Claus Rasmussen | Via Reuters
Nvidia reported third-quarter earnings that beat expectations for sales and earnings, while delivering a better-than-expected forecast for the current quarter. The results show that Nvidia is continuing to expand while demand for its powerful AI chips remains high.
Shares fell 2% in extended trading.
Here are the results.
- Revenue: $35.08 billion vs. $33.16 billion expected by LSEG
- Earnings per share: 81 cents adjusted vs. 75 cents adjusted expected by LSEG
Nvidia said it expects about $37.5 billion plus or minus 2% in current quarter sales, versus $37.08 billion expected by analysts polled by LSEG.
Revenue continues to surge at Nvidia, rising 94% on an annual basis during the quarter ended Oct. 27. That’s still a consecutive slowdown from the previous three quarters, when sales rose 122%, 262%, and 265%, respectively.
Net income during the quarter rose to $19.3 billion, or 78 cents per share, versus $9.24 billion, or 67 cents per share in the year-ago period.
Nvidia has been the primary beneficiary of the ongoing artificial intelligence boom. Shares have nearly tripled so far in 2024, making it the most valuable publicly-traded company.
That’s been driven by Nvidia’s data center business, which records sales from AI processors and related parts, and now makes up the vast majority of Nvidia’s revenue. Nvidia posted $30.8 billion in its data center division, while analysts polled by StreetAccount were expecting $28.82 billion in revenue.
Many of Nvidia’s end-customers, such as Microsoft, Oracle, and OpenAI, have started receiving the company’s next-generation AI chip called Blackwell.
Nvidia’s CFO Colette Kress said in a statement that Blackwell production shipments are scheduled to begin in the current quarter and will ramp up next year. The company also said that its current-generation AI chip, the H200, “grew significantly in the quarter.”
“Both Hopper and Blackwell systems have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026,” Kress said in a statement.
Nvidia’s gaming business reported $3.28 billion in revenue, versus StreetAccount expectations of $3.03 billion. Nvidia’s GPUs were first developed for 3D gaming before the technology was repurposed for artificial intelligence.