Nvidia&#x27;s Dominance in AI Chip Market Fuels Unprecedented Growth and Valuation

Meet the Supercharged Growth Stock Poised to Hit $10 Trillion By 2030 According to 1 Wall Street Analyst | The Motley Fool

Numerous growth drivers and strong tailwinds should combine to drive this artificial intelligence (AI) pioneer higher. A lot of ink has been spilled about the potential for artificial intelligence (AI), and with good reason. Since the dawn of AI early last year, companies have been flocking to the technology, which promises to streamline processes, create original content of all stripes, and dramatically increase productivity. The potential has businesses ponying up to reap the windfall of AI, and spending is increasing at a blistering pace. Yet, beyond its AI prowess, Nvidia has a number of other growth drivers that could help propel the stock to new heights. Nvidia pioneered the GPU back in 1999 to render lifelike images in video games. This was made possible thanks to parallel processing, or the ability to conduct a multitude of mathematical calculations simultaneously. By breaking up a computing task into smaller, more manageable bits, Nvidia revolutionized an industry -- but that was just the beginning. The chipmaker soon pivoted, applying the same technology to a number of other applications and breaking ground across the tech landscape. Nvidia GPUs are now a staple in data centers, cloud computing, autonomous driving, machine learning, and, most recently, generative AI. During the past 10 years, Nvidia's revenue has grown by 2,300% (as of market close on Wednesday), while its net income has surged 8,460%. While it's been a rollercoaster ride, the company's consistently strong financial performance has driven impressive growth in its stock price, which has soared 29,050%. In its fiscal 2025 third quarter (ended Oct. 27), Nvidia delivered record revenue of $35 billion, up 94% year over year and 17% sequentially. This drove adjusted earnings per share (EPS) of $0.81, up 103%. Fueling the results was the data center segment, which includes chips used in AI, data centers, and cloud computing. Revenue for the segment surged 112% to $30.8 billion, driven by unquenchable demand for AI. Given that demand, the runway ahead is long. Analysts at Goldman Sachs Research estimate the market for AI could top $7 trillion by 2030. Furthermore, thanks to the improving economy, businesses are more willing to invest in this new and revolutionary technology, a trend that will benefit Nvidia. The growing adoption of AI is clearly Nvidia's biggest opportunity, but there are others. Before the advent of AI, gaming had long been Nvidia's primary growth industry. That changed over the past few years when its dominance was usurped by AI. The segment still represents 10% of Nvidia's revenue, and it could see significant upside now that the economy is on the mend. Inflation took a toll on the gaming business, as users made do with their existing graphics cards, biding their time until conditions improved. Now, many industry experts believe pent-up demand is about to be unleashed, causing a long-awaited upgrade cycle, especially as we head into the holiday season. In the second quarter, Nvidia captured 88% of the discrete desktop GPU market, according to Jon Peddie Research. While the industrywide third-quarter results aren't yet available, Nvidia's dominance isn't expected to change. Furthermore, demand for videogame processors is expected to surge over the next five years, jumping from $3.6 billion in 2024 to $15.7 billion by 2029, a compound annual growth rate (CAGR) of 34%, according to Mordor Intelligence. As the leading provider of cutting-edge gaming processors, Nvidia is likely to benefit from these secular tailwinds. Let's not forget the data center market, which was already experiencing robust growth thanks to the digital transformation. As the demand for cloud computing grows, so too does the need for data centers to support that growth. Nvidia controls an estimated 95% of the data center GPU market, according to CFRA Research analyst Angelo Zino. Furthermore, it's estimated that the data center market will more than double, climbing from $302 billion in 2024 to $622 billion by 2030, a compound annual growth rate of 10%, according to Prescient and Strategic Intelligence Market Research. While generative AI is making all the headlines, there are established branches of AI that are powered by Nvidia's processors -- including machine learning. The company dominates an estimated 95% share of that market, according to New Street Research. Nvidia's dominance and the expectations for continued growth in each of these markets give the company plenty of additional low-hanging fruit to pluck. Nvidia currently sports a market cap of roughly $3.58 trillion, which means it will take stock price gains of 179% to drive its value to $10 trillion. According to Wall Street, Nvidia is poised to generate revenue of nearly $126 billion in fiscal 2025 (which ends in January), giving the stock a price-to-sales (P/S) ratio of roughly 28. Assuming its P/S remains constant, Nvidia would need to grow its revenue to roughly $352 billion annually to support a $10 trillion market cap. Wall Street is currently forecasting revenue growth for Nvidia of 47% annually over the next five years. If the company can achieve that benchmark, it could achieve a $10 trillion market cap as soon as 2028. While that might seem ambitious, I'm not the only one who believes it's only a matter of time. Beth Kindig, CEO and lead tech analyst for the I/O Fund, calculates that Nvidia will reach a $10 trillion market cap by 2030: We believe Nvidia will reach a $10 trillion market cap by 2030 or sooner through a rapid product road map, its impenetrable moat from the CUDA [Compute Unified Device Architecture] software platform, and due to being an AI systems company that provides components well beyond GPUs, including networking and software platforms. Given the multiple paths for growth ahead and the rapid and accelerating adoption of AI, I think Kindig has done her homework. That said, Nvidia isn't for the faint of heart. This past summer, the stock plunged 27% in just six weeks between June and July as reports suggested the launch of its AI-centric Blackwell chips could be delayed. Cooler heads have prevailed since then, and the stock has run to new heights. But the lesson stands. Wall Street expects Nvidia to generate EPS of $4.20 in fiscal 2026, which begins in late January. That works out to roughly 33 times forward earnings (as of this writing). I think that an attractive price to pay for a company supplying the gold standard processors needed to power one of the most important technology shifts in a generation.

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Nvidia Sees Continued AI Momentum. Is This a Golden Opportunity to Buy the Stock? | The Motley Fool

Nvidia (NVDA -3.22%) once again showed that it is the company most benefiting from the artificial intelligence (AI) infrastructure build-out, as it continued to show astronomical revenue growth in fiscal 2025's Q3 (ended Oct. 27, 2024). And in a truly incredible feat (despite its huge size), the company generated more in profits this quarter than it generated in revenue in the year-ago quarter. That is just something you do not see often with large companies. While the stock price did not soar on this latest news, it has still nearly tripled year to date as of this writing. With another great quarter in the books, let's take a closer look at Nvidia's most recent results to see if the stock's momentum can continue. While Nvidia's revenue growth continued to decelerate from the unsustainable levels it saw earlier this year, the chipmaker was still able to see its fiscal 2025 Q3 revenue surge 94% to $35.1 billion. The company saw 262% revenue growth in fiscal Q1 and 122% in fiscal Q2. Adjusted earnings per share (EPS) more than doubled to $0.81. Those results easily topped analyst expectations for adjusted EPS of $0.75 on revenue of $33.2 billion. Its data center business once again led the way, with revenue soaring 112% year over year to $30.8 billion. The growth was powered by demand for its Hopper graphics processing unit (GPU) computing platform, particularly its H200 Hopper chip. During the quarter, the company also shipped 13,000 samples of chips based on its next-generation Blackwell GPU architecture. The company said it is seeing significant inference revenue growth, and that it has the largest inference platform. Cloud service providers made up about half of Nvidia's data center revenue in the quarter. However, it said enterprise AI is becoming the next big wave of AI, and that thousands of companies are using Nvidia NIM, its set of accelerated inference microservices that organizations can use to run large language models (LLMs) on its GPUs. It also said that industrial and robotic AI growth is beginning to accelerate. Nvidia's other segments also showed solid growth, although they are now much smaller than its data center business. Gaming revenue jumped 15% to $3.3 billion, while professional visualization rose 17% to $486 million, and automotive and robotics revenue soared 72% to $449 million. The company continues to produce a prodigious amount of cash, with operating cash flow of $17.6 billion and free cash flow of $16.2 billion. Nvidia ended the quarter with net cash and marketable securities of $38.5 billion and $8.5 billion in debt. Looking forward, Nvidia projected fiscal Q4 revenue to be around $37.5 billion, which would represent approximately 70% year-over-year growth. The growth will continue to be led by Hopper, as well as the ramp-up of its newest Blackwell GPU architecture. It said that demand for Blackwell greatly exceeds current supply, but that just Blackwell revenue should exceed its prior expectations by several billion dollars. The company noted that the last generation of foundation models will end using about 100,000 Hopper GPUs, while the newest foundation models will start by using 100,000 Blackwell GPUs. It sees this as an indication of where growth is headed, while also noting that it has a large installed base, into which it will also scale its inference business. Despite the stock nearly tripling this year, Nvidia's stock is not expensive. It currently trades at a forward price-to-earnings (P/E) of just over 34 times next year's analyst estimates, with a price/earnings-to-growth (PEG) ratio of 0.85. A PEG ratio of under 1 is typically viewed as undervalued, and growth stocks will often have multiples well above 1. Nvidia continues to produce outstanding growth, which probably could be even greater if not for supply constraints. Demand for its GPUs remains insatiable as companies race to build out their AI infrastructure. Importantly, though, Nvidia is starting to see strong demand beyond cloud computing customers and among enterprise and industrial customers. It is also beginning to see a lot of demand for inference. While cloud computing companies will continue to need more and more computing power as they advance AI models, seeing strong growth beyond these areas is important for Nvidia going forward, so this is a good sign. Given the strong continued demand for AI infrastructure and its inexpensive valuation, Nvidia continues to be an attractive stock for investors to consider buying.

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Prediction: Nvidia Stock Is Going to Soar Over the Next 12 Months | The Motley Fool

Nvidia stock dipped immediately after the company released its latest financial results on Nov. 20, but that might be a golden buying opportunity. Nvidia (NVDA 0.54%) is the world's leading supplier of graphics processing units (GPUs) for data centers, which are used in the development of artificial intelligence (AI). Over the last two years alone, GPU sales have helped Nvidia add $3.2 trillion to its valuation. The company just reported results for the fiscal 2025 third quarter (ended Oct. 27) after the market closed on Nov. 20, and they obliterated Wall Street's expectations. It just started shipping a new generation of GPUs based on its powerful Blackwell architecture, and demand is heavily outstripping supply. Nevertheless, the stock sank 2.5% in after-hours trading following the third-quarter report. I predict shares are going to soar over the next 12 months, so here's why any weakness might be a buying opportunity. In the past, data centers were built with central processing units (CPUs), which were great for handling a small number of specific tasks with high efficiency. However, GPUs are designed for parallel processing, meaning they can handle numerous tasks at the same time with a very high throughput. That's crucial when it comes to training AI models and performing AI inference, because those workloads require chips that can rapidly absorb and process trillions of data points. GPUs built on Nvidia's Hopper architecture -- like the H100 and H200 -- have been the go-to choice for AI development so far. Data center operators like Microsoft and Amazon buy tens of thousands of those GPUs and rent their computing power to businesses and AI developers, which can't afford to build their own infrastructure (a single H100 can sell for up to $40,000). Now, a new age of AI computing has arrived with Nvidia's Blackwell GPU architecture. The Blackwell-based GB200 NVL72 system can perform AI inference 30 times faster than the equivalent H100 system. A recent estimate suggests an individual GB200 GPU within an NVL72 system costs around $83,333, so developers are getting that 30-fold increase in AI inference performance for a mere twofold increase in price compared to the H100. In other words, the Blackwell GPUs should drive an incredible increase in cost efficiency, so more businesses and developers can afford to deploy the most advanced AI large language models (LLMs). Nvidia shipped 13,000 Blackwell GPU samples to customers during the third quarter. Microsoft, Dell, and CoreWeave have already started building Blackwell-based data centers, and Oracle customers will soon be able to access computing clusters with a staggering 131,000 Blackwell GPUs. Nvidia CEO Jensen Huang says Blackwell demand is "staggering." GPU shipments could soar more than 20-fold in the next few months alone, but I'll discuss that further in a moment. Coming into the third-quarter report, the consensus estimate among Wall Street analysts suggested Nvidia would deliver $33.2 billion in total revenue. The company blew that out of the water with $35.1 billion in sales, which was a 94% increase from the year-ago period. The data center segment alone accounted for $30.8 billion of that total, which represented 112% growth. The majority of that money was attributable to GPU sales. The company also exceeded expectations with its guidance for the current fiscal 2025 fourth quarter (which will finish at the end of January). It told investors it plans to deliver $37.5 billion in total revenue, compared to Wall Street's estimate of $37.1 billion. Huang previously said he expected Blackwell GPUs to contribute "several billion dollars" in revenue during the fourth quarter, but he now says the company is on track to exceed that estimate, although he didn't offer a specific dollar figure. As I mentioned earlier, the stock suffered a modest dip in after-hours trading following the release of its third-quarter report. That's surprising because the company beat expectations on every level. But the stock is up 202% this year, so it's possible some investors simply decided to take profits. Let's talk about valuation. Based on Nvidia's trailing-12-month earnings per share of $2.62, its stock trades at a price-to-earnings ratio (P/E) of 54.2. That's actually a discount to its average P/E of 58.6 over the last 10 years. The important number is that Wall Street thinks Nvidia will generate $4.21 in earnings per share in fiscal 2026, which starts in a few months. That places it at a forward P/E of 33.8, which means its stock will have to soar 73% throughout next year just for its P/E to trade in line with its 10-year average of 58.6. In my opinion, Wall Street's fiscal 2026 earnings estimate might actually be too conservative! I mentioned earlier that Nvidia shipped 13,000 Blackwell GPUs to customers during the third quarter. Morgan Stanley says the company is on track to ship up to 300,000 units in the final three months of calendar year 2024, followed by up to 800,000 units in the first three months of 2025. In other words, Blackwell shipments could surge by at least 20-fold in Nvidia's current fiscal 2025 fourth quarter compared to the third. Plus, Morgan Stanley thinks Microsoft, Amazon, Alphabet, and Meta Platforms will spend a combined $300 billion on AI data center infrastructure next year, with a significant portion going toward GPUs. Those are only four of Nvidia's top customers; OpenAI, Oracle, or even Tesla are also big spenders. Therefore, I think there is a very good chance that the stock delivers a gain of 73% or more next year.

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Can Anything Stop Nvidia? | The Motley Fool

We're now two years removed from OpenAI's launch of ChatGPT, and there's no doubt which company has been the biggest winner of the generative AI revolution so far. Nvidia (NVDA -3.22%), now best known for making cutting-edge chips capable of powering AI applications like ChatGPT, has seen its stock jump by 10 times since the beginning of 2023, making plenty of investors significantly richer. This month, it again became the world's most valuable company, with a market cap of more than $3.5 trillion. Despite concerns that competition would bring it to heel or that the AI megatrend was inflating a bubble that would eventually burst, Nvidia has continued to deliver blowout results, and that pattern was on display once again in the fiscal 2025 third-quarter earnings report it delivered Wednesday. Total revenue in the quarter jumped 94% year over year to $35.1 billion, topping the consensus estimate of $33.1 billion. The data center segment, where revenue jumped 112% to $30.8 billion, drove that growth, as demand for its graphics processing units (GPUs) continues to outstrip supply. Profits also surged as the company continued to gain leverage on its operating expenses. On a generally accepted accounting principles (GAAP) basis, operating income jumped by 110% to $21.9 billion, and adjusted earnings per share surged from $0.40 to $0.81, ahead of the consensus estimate of $0.75. Never before in history has a company as big as Nvidia grown so fast. Remarkably, its 94% revenue growth was its slowest pace on a percentage basis in six quarters, but it's sustaining blistering growth rates for much longer than analysts had expected. The amount of revenue in dollar terms that it's adding each quarter is also increasing sequentially, so the real growth of the business is accelerating even as its percentage growth moderates. Earlier this year, some analysts were questioning whether the level of dominance Nvidia has established in the AI chip sector was sustainable. Advanced Micro Devices and Intel have launched their own competing AI accelerators. However, they have struggled to make a dent in Nvidia's dominant market share. AMD disappointed the market with its latest earnings report and announced layoffs earlier this month, while Intel began a massive restructuring after its stock hit a 20-year low. At this point, the key constraint on Nvidia's growth is on the supply side, as CEO Jensen Huang recently said demand for its latest GPUs, built using its new Blackwell architecture, is "insane." Describing demand for the Blackwell chips on the earnings call, CFO Colette Kress said, "Every customer is racing to be the first to market." Management stressed how broad Blackwell's reach is in terms of applications and customer base, and how vast its partner ecosystem is. "[A]lmost every company in the world seems to be involved in our supply chain," Huang said. Beyond the concerns that rivals could make headway against it, the other bearish case about Nvidia revolves around the idea of an "AI bubble." Some onlookers think that market demand for AI applications won't justify the massive capital expenditures on AI infrastructure that are fueling Nvidia's growth. However, when asked about it on the earnings call, Huang pushed back on the idea that AI is reaching scaling limitations, saying, "Our foundation model pre-training scaling is intact, and it's continuing." He also said that it was key for post-training and inference to scale in order for large language models and other AI models to become more capable. After having successfully withstood competition from AMD and Intel, and delivering another blowout quarter, Nvidia looks unstoppable. Its guidance for the fourth quarter calls for another surge in revenue to $37.5 billion, up 70% from the quarter a year ago even as "demand greatly exceeds supply. Huang has described a vision for the future that has Nvidia's technology at the center of AI factories -- data centers tasked with powering artificial intelligence applications -- and companies of all stripes are racing to get to that future. Nvidia's stock pulled back slightly in after-hours trading Wednesday, but that seemed to be more of a reflection of the stock's valuation and management's guidance. However, that misreads the business. Based on its run-rate EPS, the stock trades at a P/E ratio of 45, and its profits are likely to soar over the next year. Relative to its growth rate, the stock doesn't look overpriced. Nvidia remains in the driver's seat of the AI revolution, and the stock continues to look like a screaming buy.

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Jensen Huang Just Delivered Fantastic News for Nvidia Investors | The Motley Fool

Nvidia (NVDA 0.54%) is one of the most-watched companies on the planet right now, thanks to its dominance in the hot growth area of artificial intelligence (AI). The tech giant holds an 80% share of the AI chip market, and this has translated into triple-digit revenue growth for its data center business quarter after quarter. That's why all eyes were on Nvidia this week when the company reported fiscal 2025 third-quarter figures. This market powerhouse once again surpassed analysts' estimates for revenue and earnings per share, delivered record revenue, and maintained gross margin of more than 74%. Importantly, Nvidia also was optimistic about the future, predicting a 70% increase in fourth-quarter revenue year over year. But what really stood out were words from chief executive officer Jensen Huang. In fact, he delivered fantastic news for Nvidia investors. First, though, a bit of background on Nvidia's path so far. As mentioned, Nvidia is a major player in the world of AI, a market that's worth about $200 billion today and is forecast to reach $1 trillion by the end of the decade. The company is well-positioned to benefit as it sells not only the best-performing chips around, but also related products and services -- such as networking tools and enterprise software. The company offers a full stack of AI, so customers can turn to Nvidia for any of their AI needs. This has translated into soaring earnings and share-price performance, as well as major gains in free cash flow and return on invested capital over time. Today, Nvidia has reached a particularly key moment. It's in the process of launching its Blackwell architecture and best-performing chip yet. The company already has shipped 13,000 sample Blackwell chips to customers, and the Blackwell platform is in full production. What about the fantastic news delivered by Nvidia's chief? "Blackwell production is in full steam," Jensen Huang said during the company's earnings call. "We will deliver this quarter more Blackwells than we had previously estimated." This comment is key because it may eliminate one of the company's biggest risks: potential supply chain or production snags early in the launch that could threaten delivery volume. Of course, demand still exceeds supply, and Nvidia expects this to continue. But this isn't due to a problem with Nvidia's processes. Instead, it's because we're in the early days of this AI revolution, and everyone aims to get on board with the best possible products -- and Blackwell is at the top of the list. The increase in deliveries equals more good news: Nvidia said it's on track to beat its previous expectations for Blackwell revenue of "several billion dollars" in the fourth quarter. There's reason for investors to be confident about Nvidia's ability to launch and ramp-up production of Blackwell -- and to immediately start generating major revenue from this new platform. Blackwell is set to become the company's new revenue driver, considering the fact that the world's major tech companies are rushing to get in on the platform. Microsoft's Azure, for example, recently said on X (formerly known as Twitter) that it became the first cloud service provider to run the Blackwell system. All of this may not boost Nvidia's shares right away for two reasons. First, considering the stock's path so far, some investors may lock in gains at this level -- or wait to buy on a dip. After all, stocks generally don't rise in one straight line forever. And second, Nvidia's forecast for fourth-quarter revenue showed a slowing of growth, to about 70% year over year as I mentioned above, from the third-quarter's 94% growth -- disappointing some Nvidia watchers. However, it's important to keep in mind that Nvidia, ramping-up production of a major new architecture, has reached a transition point. It faces the costs of this process, and at this stage, won't be as efficient as it will be several months down the road. A potential -- and minor -- slowdown in the next quarter doesn't change the bright long-term outlook for this AI giant. All of this means that Jensen Huang's words offer Nvidia shareholders reason to celebrate. And any potential dip in the share price offers them -- and newcomers, too -- an opportunity to pick up shares of this top AI player.

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Nvidia Just Delivered a Beat-and-Raise Quarter. There's 1 Red Flag Investors Shouldn't Ignore. | The Motley Fool

The chipmaker continued to benefit from robust demand for artificial intelligence (AI). Will it last? Investors were on the edge of their seats heading into Nvidia's (NVDA 0.48%) highly anticipated financial report after the market closed on Wednesday -- and rightfully so. The company has become the bellwether for the tech industry and a barometer for the progress of the artificial intelligence (AI) revolution. The chipmaker delivered better-than-expected results, giving investors assurances that this paradigm shift would continue. However, hidden among the otherwise blockbuster results was one red flag that bears watching. Below, I'll take a look at the results, what the future holds, and one thing investors should keep an eye on. The bar was set high heading into Nvidia's fiscal 2025 third quarter (ended Oct. 27), and the chipmaker delivered. The company generated record revenue of $35.1 billion, up 94% year over year and 17% sequentially. This fueled adjusted earnings per share (EPS) of $0.81, which surged 103%. For context, analysts' consensus estimates were calling for revenue of $33.13 billion and EPS of $0.75, so Nvidia cleared both hurdles with room to spare. Fueling the robust results was a record performance from the data center business, which continues to be the main driver. The segment -- which includes processors used for cloud computing, data centers, and AI -- delivered revenue that soared 112% year over year to $30.8 billion, driven by strong demand for AI. One of the concerns that surfaced last quarter was a sequential dip in the company's gross margin, a trend that continued in Q3. Gross margin of 74.6% was down 500 basis points from 75.1% in the second quarter. CFO Colette Kress blamed a product "mix shift from H100 systems to more complex and higher cost systems." While the trend continued this quarter, it's still well above the average of the past decade. Yet even as revenue soared 94%, operating expenses climbed just 50%, sending more to the bottom line and fueling the 103% jump in EPS. Nvidia's cash stockpile has more than doubled over the past year, with cash and marketable securities of $38.5 billion, an increase of 110%. Free cash flow of $16.8 billion soared 138%. The company provided investors with an update on the upcoming release of its highly anticipated Blackwell AI architecture, which is scheduled to begin shipping in the calendar fourth quarter: We completed a successful mask change for Blackwell, our next Data Center architecture, that improved production yields. Blackwell production shipments are scheduled to begin in the fourth quarter of fiscal 2025 and will continue to ramp into fiscal 2026 ... 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. Nvidia's fiscal 2026 begins in late January, and the commentary suggests that even as demand remains strong, supply constraints will hamper its growth well into next year. Management expects the company's growth spurt to continue. Nvidia is guiding for record fourth-quarter revenue of $37.5 billion, which would represent year-over-year growth of 70%. While that's ahead of Wall Street's expectations of roughly $37 billion, investors were initially hesitant to celebrate -- but that soon gave way to reverie. Nvidia already has plenty of growth priced in, but the stock is still attractively priced, selling for roughly 35 times next year's expected earnings. While that's a slight premium, it's a reasonable price to pay for a company that's expected to grow earnings by 121% this year and 47% in its fiscal 2026. There is one area investors should keep an eye on. In Nvidia's CFO Commentary, Kress noted that "Cloud service providers represented approximately 50% of our Data Center revenue." Doing the math reveals that 44% of Nvidia's total revenue -- or $15.4 billion -- comes courtesy of the big cloud infrastructure providers, primarily Amazon Web Services, Microsoft's Azure Cloud, and Alphabet's Google Cloud. The buildout of cloud data centers is ongoing, and the major cloud providers have all signaled they plan to continue spending heavily to expand their AI infrastructure. That trend primarily benefits Nvidia, as the company has a dominant 98% share of the market for data center graphics processing units (GPUs). However, that cuts both ways. If demand slumps -- for any reason -- the major cloud providers could rein in spending, putting billions of dollars of Nvidia's revenue at risk. Don't get me wrong. I'm a big believer in the potential of AI and, by extension, the opportunity ahead for Nvidia. The stock represents roughly 12% of my personal portfolio (as of this writing), so I'm rooting for the company to succeed. That said, I'd be remiss if I didn't keep a weather eye on the horizon for problems that could send the stock plunging.

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Observer

Nvidia Reports Another Blowout Quarter -- Here's Why Its Stock Price Is Falling

Nvidia's revenue and profits have skyrocketed by more than 90 percent year-over-year. Nvidia (NVDA) is retaining its title as the darling of the A.I. revolution -- at least for the time being. The Santa Clara, Calif.-based chipmaker reported record revenue yesterday (Nov. 20) for the July-September quarter that surpassed Wall Street's already lofty expectations. Demand for Nvidia's A.I. chips continues soaring, according to the company's CEO Jensen Huang. "The age of A.I. is upon us and it's large and diverse," said Huang during an earnings call. Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters Nvidia's quarterly revenue jumped 94 percent to $35 billion while net income more than doubled to $19.3 billion. Before the A.I. boom, Nvidia's graphics processing units (GPUs) were most used by the gaming industry. Today, the company's data center business, which serves mostly A.I. clients, accounts for nearly 90 percent of its total revenue, bringing in $30.7 billion for the quarter compared with $14.5 billion last year. Gaming revenue, meanwhile, totaled at $3.2 billion. The rest of the company's sales came from its automotive and professional visualization departments. Huang said demand for Nvidia's new Blackwell GPUs, which began shipping this month, "is very strong" and production is "in full steam." In recent months, Nvidia has struggled to meet demand for its Hopper chips. Why are Nvidia shares down? Despite a blowout quarter, Nvidia's share price slipped nearly 2 percent after the earnings release. Some investors were spooked by the chipmaker's $37.5 billion revenue forecast for the fourth quarter, which would represent a slowdown in the rapid growth witnessed during past quarters. The "conservative revenue forecast" is "a touch disappointing," said Kathleen Brooks, an analyst at broker XTB, in an investor note. The company's customer base is also increasingly concentrated. Cloud service providers, which include the likes of Amazon Web Services, accounted for around half of Nvidia's data center revenue, compared with 45 percent during the same period a year ago. Nvidia's reliance on this sector "could be a mild cause of concern" going forward, according to Brooks. While some players in the tech industry have also raised concerns that A.I. model improvements are hitting a plateau, Huang remains optimistic about their scaling potential. "Pre-training scaling is intact and its continuing," said the CEO, adding that test-time compute research has also emerged as an additional and promising method of scaling. "As a result of that, the demand for our infrastructure is really great." Nvidia expects the A.I. hype will only continue as society embraces the technology. Besides predicting that machine learning will eventually replace coding, Huang noted that data centers around the world are being modernized into "A.I. factories" that will generate A.I. "just like we've generated electricity." The early foundations of an A.I.-driven world are already evident in developments like the adoption of A.I. agents across workplaces and breakthroughs across physical A.I., said Huang. "We expect this growth, this modernization, and the creation of a new industry to go on for several more years."

[9]

Nvidia's Blackwell Launch Is on the Way. 3 Things You Need to Know. | The Motley Fool

Nvidia (NVDA -3.22%) has wowed investors over the past few years with its mind-boggling pace of innovation, launching new architectures and graphics processing units (GPUs) to stay on top in the high-growth area of artificial intelligence (AI). The Ampere architecture arrived in 2020, and Hopper followed in 2022. This has helped the tech giant generate triple-digit data center revenue growth quarter after quarter. In between the architecture launches, Nvidia released new GPUs, improving upon the H100 with the new H200, for example. Chief Executive Officer Jensen Huang pledges to update chips on an annual basis, and this rhythm should keep the tech giant ahead. However, the one launch everyone has been waiting for and talking about is the Blackwell architecture, and today, that launch is on the way. The company expects to ramp-up production in this current quarter. Everyone's excited about Blackwell because of its game-changing features -- six transformative technologies, including the most powerful GPU yet and high-speed networking and preventative maintenance capabilities. Below are three things you need to know about this exciting new revenue driver for Nvidia. With such a major launch ahead, some investors may worry about risks to the supply chain. Nvidia doesn't create all of its products in-house and relies on suppliers for certain materials or services -- for instance, Micron Technology and SK Hynix for memory components. It also relies on partners to incorporate its GPUs into their products, like servers, and sell these to customers. This is where companies like equipment makers Super Micro Computer and Dell fit in. "Almost every company in the world seems to be involved in our supply chain," Huang said during this week's third-quarter earnings call. Though this requires a lot of organization from Nvidia, it's very positive because it allows the company to ramp-up production to a high level. Nvidia is going from zero Blackwell shipments last quarter to billions this current quarter -- and that couldn't be done with only a limited number of players. A solid supply chain also ensures that if one supplier encounters a problem, Nvidia could turn to another to pick up the slack. This reduces the risk of delayed deliveries, something Nvidia surely aims to avoid, considering the high level of demand for the new Blackwell platform. Nvidia doesn't disclose exactly how much of its revenue each customer represents. But through comments from Huang and these customers, we know that the biggest tech players today are driving demand for Blackwell. Microsoft, Oracle, and OpenAI all have received Blackwell systems, according to their social media posts. In recent earnings reports, customer Meta Platforms spoke of increasing its investment in AI infrastructure spending, a move that suggests more spending on Nvidia's products, and Alphabet said it would be one of the first to provide Blackwell GPUs at scale. We also can add to this a recent comment by Oracle co-founder Larry Ellison, who said he and Tesla chief Elon Musk "begged" Nvidia's Huang for more GPUs. These tech giants have the financial resources to continue heavily investing in AI. Their strong desire to win in this AI revolution means they're likely to keep returning to the company providing the top-performing products and services. And that's Nvidia. This should offer investors confidence about Blackwell's ability to become Nvidia's next major growth driver. In the third quarter, Nvidia reported gross margin of more than 74%, a figure showing a jaw-dropping level of profitability on sales. The tech giant has maintained levels wider than 70% quarter after quarter. However, Nvidia now forecasts a slight dip in gross margin to the low 70% level as the Blackwell launch unfolds. This isn't alarming -- and actually is completely normal -- considering the job Nvidia has right now and just ahead. The company is working with many moving parts, including various Blackwell configurations, seven different chips, many networking possibilities, and a variety of customers from cloud providers to equipment makers. Managing all of this in the early days of the launch will be costly for Nvidia, but this is a temporary problem. When Blackwell has reached full production, Nvidia predicts gross margin will settle around the mid-70% level, possibly in the second half of next year. That level of profit on sales, along with solid revenue growth quarter after quarter, could make Nvidia -- and its investors -- major winners in this AI revolution.

[10]

Entrepreneur

'Jaw-Dropping Performance in 2024,' Says a Senior Analyst as Nvidia Reports Earnings

Nvidia, the world's biggest company with a $3.5 trillion market capitalization, reported its third-quarter earnings on Wednesday after market close. Lukman Otunuga, senior market analyst at online trading broker FXTM, told Entrepreneur before the earnings release that "with Nvidia's jaw-dropping performance in 2024, expectations are sky-high." "The earnings could either propel the stock to fresh all-time highs or pull it below key support levels, depending on the guidance shared," Otunuga remarked in an emailed statement. Related: Why One Prominent Investor, 'Britain's Warren Buffett,' Is Staying Away From Nvidia Stock Nvidia's overall revenue was $35.1 billion, above estimates of $33.2 billion, and the AI chipmaker's data center revenue was $30.8 billion, also above the expected $29.1 billion. Melissa Otto, head of technology, media, and telecommunications research at S&P Global Visible Alpha, told Bloomberg ahead of the earnings that the number for Nvidia to "meet or beat" was $29 billion for data center revenue; Nvidia beat the forecast on Wednesday. Nvidia announced that it will start shipping out its new AI chip Blackwell in the fourth quarter and that demand is expected to exceed supply for several quarters. The company forecasted its fourth-quarter revenue at $37.5 billion. Bloomberg data predicts a close to $300 billion swing in Nvidia's market value on Thursday, or an 8% move in either direction. Related: Here's Why Nvidia Just Broke Another Record The critical matter for Nvidia is its new Blackwell chip, which CEO Jensen Huang has said encountered "insane demand." Though the chip has recently faced reports of overheating, Otto states that Blackwell is expected to bring in $63 billion in revenue for the company next year, a 10% increase from forecasts given just last week. "Clearly sentiment is improving around Blackwell," Otto said.

[11]

Nvidia's path to $4 trillion begins today, says Wedbush By Investing.com

Investing.com -- The path for Nvidia (NASDAQ:NVDA) to become the first company with a $4 trillion market valuation begins today, Wedbush analysts said in a note. The AI chipmaker is set to report its fiscal third-quarter earnings on Wednesday, with Wedbush analysts expecting "another 'drop the mic performance'" from the company. They note that Nvidia is the only company expected to have an AI capital expenditure (capex) of more than $1 trillion in the coming years, with its GPUs being "the new oil and gold in this world." "We believe the path to a $4 trillion market cap and beyond for 2025 starts today," analysts led by Daniel Ives said in the note. They predict Nvidia will deliver another $2 billion revenue beat in Q3, alongside a strong forward guidance, which they view as key for investor confidence. Wedbush also highlights that production and demand for Nvidia's Blackwell chips remain robust, and the investment bank expects "very bullish" commentary from CEO Jensen Huang during the earnings call. "Blackwell represents the next frontier for Nvidia and the overall AI Revolution and we believe the Street is still way underestimating the demand curve over the next 12 to 18 months and beyond," the note states. Moreover, recent cloud-related AI results from companies like Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Google (NASDAQ:GOOGL) reinforce the bullish outlook. Overall, Ives and his team argue that the conditions are favorable for tech stocks, including Nvidia, to sustain momentum into 2025, citing expectations of a macroeconomic soft landing, the start of a Federal Reserve rate-cutting cycle, and easing regulatory pressures under a potential Trump administration. They view AI as a transformative investment cycle that is still in its early stages, poised to reshape the technology sector in the years ahead.

[12]

PYMNTS

Wall Street Braces for Nvidia's Trillion-Dollar Earnings Report | PYMNTS.com

All eyes are on Nvidia as the AI juggernaut prepares to release what could be the most consequential tech earnings of 2024. Bloomberg reported that the chip giant's stock could move about 8% in either direction following the results, potentially shifting its market value by nearly $300 billion -- an amount exceeding the total worth of most S&P 500 companies. The heightened uncertainty centers on Nvidia's new Blackwell chip line. While the company projects billions in fourth-quarter revenue from the product, production delays have complicated supply forecasts. Customers may delay purchases of current-generation Hopper chips while awaiting Blackwell's release. "Many of Nvidia's customers, particularly cloud service providers and major enterprises, are prioritizing AI chip investments despite broader cost-cutting measures," Dhanvin Sriram, founder of AI tool PromptVibes, told PYMNTS. "AI workloads have become mission-critical, and Nvidia's GPUs remain the gold standard for training large models. However, spending plans are becoming more strategic. Customers are looking for ways to maximize efficiency, such as deploying fewer but more powerful chips or exploring software solutions like Nvidia's AI Enterprise suite to optimize their existing hardware." The stakes are high, given Nvidia's nearly 200% stock surge in 2024, which made it the world's most valuable company. The chipmaker has exceeded revenue estimates by an average of $1.8 billion over the past five quarters. Bloomberg reported that customers, including Microsoft, Alphabet, Amazon and Meta, indicated increased capital spending plans for the year ahead, pointing to continued demand for Nvidia's artificial intelligence accelerator chips. "From what I've seen in the industry, many enterprise customers are becoming more strategic with their AI investments," Sriram said. "Initially, there was a rush to adopt Nvidia's GPUs as AI projects gained momentum, but now customers are focusing on maximizing ROI from existing deployments. This shift means slower growth in bulk orders for AI chips as companies reassess their spending to ensure scalability and efficiency. That said, Nvidia's expansion into cloud partnerships and software ecosystems helps mitigate this trend, as it ties customers into a broader value chain that extends beyond just hardware." Originally a gaming chip maker, Nvidia has transformed into the backbone of the AI industry, with its graphics processors now powering everything from chatbots to autonomous vehicles. The company's 1993 founding as a gaming hardware pioneer has evolved into a commanding presence in artificial intelligence, where its specialized chips have become essential infrastructure. Nvidia's CUDA platform and tensor core GPUs, like the A100 and H100, dominate AI model training and inference, making it a cornerstone of data center infrastructure. Its software ecosystems, such as TensorRT and NVIDIA AI Enterprise, bolster its offerings in the healthcare, automotive and robotics industries. Overall, many observers remain bullish on Nvidia and AI's prospects. Nikhil Vadgama, director of University College London's Centre for Blockchain Technologies and co-founder of Exponential Science, told PYMNTS that the surging demand for artificial intelligence infrastructure is propelling tech stocks to record heights as businesses aggressively scale up their computing capabilities. "As AI becomes ever more ubiquitous, the myriad legal and moral discussions around the technology will become more pressing issues for regulators," he said. "Across the Magnificent Seven, we now have an AI sector with quarterly revenues approaching the GDP of some European nations at more than $450 billion. This is a monumental amount of financial firepower that must come with an appropriate level of transparency and responsibility."

[13]

Tech Xplore

Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips

Nvidia on Wednesday reported a surge in third-quarter profit and sales as demand for its specialized computer chips that power artificial intelligence systems remains robust. For the three months that ended Oct. 27, the tech giant based in Santa Clara, California, posted revenue of $35.08 billion, up 94% from $18.12 billion a year ago. Nvidia said it earned $19.31 billion in the quarter, more than double the $9.24 billion it posted in last year's third quarter. Adjusted for one-time items, it earned 81 cents a share. Wall Street analysts had been expecting adjusted earnings of 75 cents a share on revenue of $33.17 billion, according to FactSet. Investors took the results in stride, however, and Nvidia's high-flying stock slipped about 1% in after-hours trading. Shares in Nvidia Corp. are up 195% so far this year. Nvidia said it expects fourth quarter revenue to grow to $37.5 billion, plus or minus 2%. Analysts are expecting, on average, $37.09 billion. "The age of AI is in full steam, propelling a global shift to Nvidia computing," Jensen Huang, founder and CEO of Nvidia, said in a statement. Nvidia's third-quarter data center revenue was $30.8 billion, up 112% from a year ago. That growth was driven by demand for the Hopper computing platform for large language models, recommendation engines and generative AI applications, the company said. Analysts' were eyeing Nvidia's guidance on its Blackwell graphics processor unit, a next-generation artificial intelligence chip that's seen demand from companies like OpenAI and others building AI data centers. Nvidia Chief Financial Officer Colette Kress said Blackwell production shipments are scheduled to begin in the fourth quarter of fiscal 2025 and will continue to ramp into fiscal 2026. On an earnings call Wednesday, Kress told investors that both Hopper GPU and Blackwell systems "have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026." "Every customer is racing to be the first to market," Kress said. "Blackwell is now in the hands of all of our major partners, and they are working to bring up their data centers." The company, seen as a bellwether for AI demand, will deliver "more Blackwells than we had previously estimated" this quarter, Huang added. Nvidia has led the artificial intelligence sector to become one of the stock market's biggest companies, as tech giants spend heavily on the company's chips and data centers needed to train and operate their AI systems. The company carved out an early lead in AI applications race, in part because of Huang's successful bet on the chip technology used to fuel the industry. The company is no stranger to big bets. Nvidia's invention of graphics processor chips, or GPUs, in 1999 helped spark the growth of the PC gaming market and redefined computer graphics. The company's third-quarter gaming revenue rose to $3.3 billion, an increase of 15% from a year ago. Nvidia's fourth-quarter guidance was "a little bit disappointing," said David Volpe, senior fund manager at Emerald Insights Fund, but the company still had "a tremendous quarter." "There's nothing touching it in terms of the growth," Volpe said. Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia's specialized chips over the last year. Nvidia, the most valuable publicly traded company by market cap as of Wednesday morning, is now worth over $3.5 trillion, with analysts closely monitoring Nvidia's path to $4 trillion. Dan Ives, an analyst with Wedbush Securities, said the earnings report shows "the AI Revolution is still in the early innings of playing out." "We view this as a Nvidia earnings press release that should be hung in the Louvre," Ives said. "Blackwell demand is just beginning. Any sell off (in Nvidia's stock) we would view as short lived, with our view this is a $4 trillion market cap in 2025 as the Godfather of AI Jensen (Huang) drives this spending wave." Through the year's first six months, Nvidia's stock soared nearly 150%. At that point, the stock was trading at a little more than 100 times the company's earnings over the prior 12 months. That's much more expensive than it's been historically and than the S&P 500 in general. "The age of AI is upon us," Huang said on the call. "And it's large and diverse." © 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

[14]

BNN

Nvidia Says New Chip Remains on Track After Forecast Disappoints

(Bloomberg) -- Nvidia Corp. assured investors that its new product lineup can maintain the company's AI-fueled growth run, though the rush to get the chips out the door is proving more costly than expected. Speaking after the release of quarterly results, Chief Executive Officer Jensen Huang said that Nvidia's highly anticipated Blackwell products will ship this quarter amid "very strong" demand. But the production and engineering costs of the chips will weigh on profit margins, and Nvidia's sales forecast for the current period didn't match some of Wall Street's more optimistic projections. That brought a tepid reaction from investors, who had bid up Nvidia shares almost 200% this year heading into the earnings report. After that dizzying rally, which turned the chipmaker into the world's most valuable company, anything but a blowout quarter was bound to be a disappointment. The shares fell about 2% in late trading. Nvidia predicted fiscal fourth-quarter sales of about $37.5 billion. Though the average analyst estimate was $37.1 billion, projections ranged as high as $41 billion. "The guidance seems to show lower growth, but this may be Nvidia being conservative," said Alvin Nguyen, an analyst at Forrester Research Inc. "Short term, there is no worry about AI demand. Nvidia is doing everything they should be doing." The company's biggest moneymaker is its accelerator chip, which helps develop artificial intelligence models by bombarding them with data. Since OpenAI's ChatGPT chatbot debuted in 2022, a frenzy of AI services has created insatiable demand for the product. Wall Street has been closely watching the launch of Blackwell, the latest entry in that category, which is faster and has an improved ability to link up with other semiconductors. Manufacturing challenges have slowed the rollout, and Nvidia warned again of supply constraints on Wednesday. Demand for the products is expected to exceed supply for several quarters. "Critical questions around Blackwell's production ramp and customer concentration remain key concerns," Emarketer analyst Jacob Bourne said in a note. "There's little room for execution missteps in 2025." Huang said that Blackwell is now in "full production," and there's still an appetite for Hopper, the previous design. "Blackwell is now in the hands of all of our major partners," he said during the conference call. But the switch to Blackwell has taken a toll on profitability. The company's gross margin, which measures the percentage of sales remaining after deducting the cost of production, will dip to as low as 73% this quarter from 75% in the previous period. The figure is expected to rebound when the new products reach larger-scale production, and the economics are more favorable. When asked whether Nvidia's gross margin could be back in the mid-70s by the middle of next year, Chief Financial Officer Colette Kress said that's a reasonable assumption. Nvidia remains far above its peers in this category: Its nearest rival, Advanced Micro Devices Inc., has a gross margin that's 20 percentage points narrower. Intel Corp.'s isn't even half of Nvidia's total. Nvidia's growth over the past two years has been staggering. Its sales are poised to double for a second year in a row, and it now notches more money in profit than it used to generate in total revenue. Nvidia's revenue rose 94% to $35.1 billion in the fiscal third quarter, which ended Oct. 27. Excluding certain items, profit was 81 cents a share. Analysts had predicted sales of about $33.25 billion and earnings of 74 cents a share. Nvidia's biggest division, the data center unit, saw revenue double from a year earlier to $30.8 billion. That beat Wall Street estimates. But networking revenue within that unit declined sequentially, and the business is more dependent than ever on a small group of customers: cloud service providers. That cohort, which includes companies such as Microsoft Corp. and Amazon.com Inc.'s AWS, accounted for 50% of data center revenue, up from 45% in the prior period. Investors want that number to go down, to show that the use of AI is spreading across the economy. Other recent earnings reports have given strong signals for AI. Nvidia customers, including Microsoft, Amazon and Meta Platforms Inc., have reaffirmed their commitment to spend heavily on AI infrastructure. Nvidia has only missed analysts' estimates on quarterly revenue once in the past five years. And it has exceeded expectations by as much as 20% in recent periods, creating a high bar for its performance. WATCH: Nvidia's Surprising AI Origin Story Its data center division alone now has more revenue than rivals Intel and AMD have in total, combined. Net income this year is on course to exceed revenue at Intel, a business that was the chip industry's biggest company for decades. Nvidia made its name by selling graphics processors, but discovered that the technology also has applications for AI. Its chips help software models during the training process, when they learn to recognize and respond to real-world inputs. Nvidia's components are also used in systems that then run the software, a stage known as inference, and help power services such as ChatGPT. The Santa Clara, California-based company has rapidly expanded its product lineup to include networking, software and services, as well as fully built-out computer systems. Huang is traveling the world lobbying for a broader adoption of his technology and trying to spread its use by corporations and government agencies. "The age of AI is upon us and it's large and diverse," Huang said.

[15]

The Guardian

Nvidia earnings: AI chip leader shows no signs of stopping mammoth growth

World's most valuable company delights investors as it reports $35bn of revenue in quarterly results The AI chipmaker Nvidia, the world's most valuable company and the engine of the artificial-intelligence boom, rolled out another set of quarterly results on Wednesday to investors' delight. The company, whose value has soared by $2.2tn this year to $3.6tn on the back of near-doubling of chip sales, said it had sales of $35.08bn, against expectations of $33.15bn. Analysts anticipated Nvidia to report earnings of $0.75 per share; the company reported $0.81. Shares of Nvidia fell about 5% in extended trading following the announcement; they previously closed at $145.89 in New York. Nvidia chief Jensen Huang, who last week said he expected the computing power driving advances in generative AI to increase by "a millionfold" over the next decade, said in a press release: "The age of AI is in full steam, propelling a global shift to Nvidia computing." Soaring demand for Nvidia's Blackwell GPU chips appears to have quelled anxiety that the company could be hit by pullback in demand from tech giants sinking billions into AI processing and data centers. Nvidia's value has bounced back after a summer slump, rising 45% from an August low. The chip stock - up nearly 200% this year and up over 1,100% in the last two years - hit record highs following the election. But many of Nvidia's chip-making peers have become a net drag on the industry as they struggle to compete with its AI dominance. Before the results were announced, Wedbush analyst Dan Ives said he expected another "drop-the-mic performance" from Nvidia, saying it was "the only game in town with $1tn+ of AI cap-ex on the way for the next few years with Nvidia's GPUs the new oil and gold in this world". The world's biggest tech companies have increased the amount they invest in AI by billions in recent quarters, positioning Nvidia as a major beneficiary. Nvidia, which many see as a bellwether of the tech sector and artificial-intelligence demand that has helped power Wall Street to multiple record-highs this year. But an escalation in the Russia-Ukraine war, the threat of global tariff hikes from Donald Trump's incoming administration, and the likelihood that US interest rates will not be cut by the Federal Reserve have also put markets on edge. Other analysts agreed with Ives' assessment that demand for Nvidia's new Blackwell chip could push Nvidia sales and market capitalization to new heights. Saxo chief investment strategist Charu Chanana wrote that signs of "extraordinary demand" for the new chip, including forecasts of record sales and reports of sold-out inventories for the next year, are strong indicators of Nvidia's continued high performance. But Chanana warned that "any signs of production delays or demand falling short could pressure the stock given its stretched valuation". Earlier this week, a report said that the chipmaker is having overheating issues with servers for its newest graphics chip, B200 & GB200 NVL72, both named for computing visionary Grace Blackwell. A spokesperson for Nvidia did not reject the report directly but said "the engineering iterations are normal and expected". Computer billionaire Michael Dell posted that "minutiae can shake you out of tremendous investments every time".

[16]

Nvidia's Stock Was Down Despite Its Amazing Earnings. Here's What History Says Is Coming Next | The Motley Fool

It's no secret that Nvidia (NVDA 0.54%) is one of the hottest artificial intelligence (AI) stocks in the market. The chip-making juggernaut just reported an incredible Q3, beating Wall Street's sky-high expectations. So why was the stock trading lower on Thursday when the market opened? Although it might seem to defy logic, it's not an uncommon phenomenon. Let's take a look at why it happens and see if the past might shed some light on what happens next. First, let's take a look at Nvidia's quarter. Few companies have as much riding on their shoulders as Nvidia does in the current market. The company's performance is seen as a bellwether for the market as a whole. It's a good thing, then, that Nvidia delivered this quarter. Nvidia's data center segment continues to be the driving force behind its success, though its gaming arm is still showing solid growth. Demand for its Superchips and related hardware is at a fever pitch. As CEO Jensen Huang puts it, "The age of AI is in full steam, propelling a global shift to Nvidia computing." The big news is the confirmation that Blackwell, the newest iteration of its Superchips, is on schedule and will be rolled out without a hitch. During the earnings call, Huang made clear that the first chips are already "in the hands of all of [Nvidia's] major partners" and will soon be shipped to end users -- companies like Meta and Microsoft operate massive AI data centers. According to Huang, demand for Blackwell is "staggering"; Nvidia has so many orders it is struggling to keep pace. Despite this, demand for its current Hopper chips remains strong, and Huang indicated he believed orders would continue well into next year. Beyond the numbers, Nvidia highlighted some important developments that show the growing demand beyond U.S. commercial clients. Denmark just launched its first AI supercomputer driven by Nvidia's Hopper chips. This is an important client base for Nvidia that is often overshadowed by its success with big tech cloud operators. "Sovereign AI" -- world governments running their own computers -- could be a massive industry as nations around the world enter an information arms race. Nvidia is also finding commercial success worldwide, with new private companies in India, Japan, and Indonesia building Nvidia-powered AI data centers. In the initial hours after the market opened on Thursday, shares of Nvidia slipped, briefly reaching $141 after closing at nearly $146 the day before. Why would this happen after such a strong quarter? This is pretty common if Wall Street's expectations exceed the company's performance, even if that performance is solid. That's not what happened here. Nvidia beat estimates handily, delivering revenues of $35.1 billion and earnings per share (EPS) of $0.81. Consensus targets were $33.2 billion and $0.75, respectively. Here's the thing: market sentiment can exceed even Wall Street estimates. With all the hype around Nvidia and talk of "insane" demand for its new chips, it's becoming increasingly difficult for the company to live up to investors' expectations no matter what numbers it delivers. It's the curse of success. Nvidia has continuously beat estimates, so now, even when it does, it might not be by enough. Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal. Don't panic. The long-term potential is where we want to place most of our focus here and this report shows it is still firing on all cylinders. Given other stocks that have been in Nvidia's shoes and Nvidia itself last quarter -- shares dipped 18% in the days after earnings -- history tells us that the stock will be just fine.

[17]

Market Screener

Nvidia's Blackwell revenue in focus as sales growth slows

(Reuters) - Nvidia has bested lofty Wall Street revenue expectations for the past eight quarters. But as analysts expect a slower pace of growth, how the company overcomes delays and supply chain issues to sell its latest AI chips is likely to be a barometer for its stock price. The chipmaker, which is at the heart of the generative artificial intelligence boom, is expected to report that its third-quarter sales surged 82.8% to $33.13 billion, according to data compiled by LSEG. This would mark the slowest growth in six quarters, with its sales at least doubling in the previous five. Growth for the fourth quarter ending January - which will include sales of Nvidia's new Blackwell chips - is likely to slow further to 67.6%. After design flaws brought on delays in ramping up production of the new series of processors, investors are keen to know whether Nvidia will be able to deliver on the promised "several billion dollars in Blackwell revenue" in the January quarter. "It's all about Blackwell right now from an investor perspective," said Hans Mosesmann, an analyst at Rosenblatt. Morgan Stanley analysts expect Blackwell revenue between $5 billion and $6 billion in the fourth quarter, while Piper Sandler analysts forecast a range of $5 billion to $8 billion in revenue from the chips that pack 30 times more speed than their predecessors. Ivana Delevska, founder and chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed ETF, is even more bullish. She expects these chips to bring in about $12 billion to $13 billion in the same period. But Nvidia's ability to deliver these chips may be limited by supply chain constraints. Capacity for the production of AI chips will be very tight going into 2025, Nvidia's contract chip manufacturer TSMC said in July. "It's hard to read this with any precision, to be clear," Morgan Stanley analysts said, adding that a change of even a week in the timeline for delivering Blackwell chips could have a meaningful impact on revenue. Nvidia's quarterly results face tough year-on-year comparisons following a surge in investments in AI infrastructure after the launch of OpenAI's ChatGPT in late 2022, which was trained and runs on thousands of Nvidia graphics processors. The company beat Wall Street's revenue estimates by narrowing margins in the past four quarters. Results at Nvidia, which has overtaken Apple as the world's most valuable firm, will be instrumental in driving, or weakening a prolonged rally in AI-linked stocks. Nvidia's own shares have nearly tripled this year. Nvidia's adjusted gross margin is expected to drop more than three percentage points to 73.6% in the fourth quarter, weighed down by the high cost of developing and ramping up the production of new AI chips. Research and development costs and adjusted operating expenses are expected to be their highest ever in that period. But demand for Nvidia's leading GPUs will remain robust in the foreseeable future, analysts and investors agree. Cloud service providers including Microsoft and Amazon are likely to keep investing billions of dollars to build out AI data centers that use Nvidia's chips, as they race to develop the fastest, most sophisticated generative AI applications. Nvidia's proprietary CUDA software framework that developers use to program its processors is also helping it dominate the AI chip market, where it commands about 80% of market share. The software has become "a really nice multi-billion-dollar annual recurring revenue business, operating at scale, still growing north of 100%," said John Belton, a portfolio manager at Gabelli Funds which holds Nvidia shares. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Aditya Soni, Sayantani Ghosh and Shounak Dasgupta)

[18]

Miami Herald

Analysts weigh in on Nvidia earnings amid bets on big stock price swing

Nvidia shares edged higher in early Wednesday trading as investors looked to the AI chipmaker's third quarter earnings after the closing bell with a focus on its demand outlook into the end of the year and beyond. Nvidia (NVDA) , which holds a commanding 90% share of the market for so-called AI accelerators, the chips and processors which power the massive data systems of hyperscalers such as Microsoft (MSFT) and Amazon (AMZN) , has added more than $2.2 trillion in value so far this year. The group has doubled its sales for each of the past five quarters, and is on pace for a fiscal 2025 tally of around $126.4 billion, but is nonetheless starting to see challenges to its near-term outlook tied to supply constraints and nascent competition from smaller rival Advanced Micro Devices (AMD) . That won't stop the group from posting another staggering gain in profits, which are expected to double over the three months ending in October to around $17.4 billion, or another surge in overall revenues, but it could mean a more modest outlook heading into its fiscal fourth quarter and beyond, forcing investors to temper some of their near-term expectations for the world's most-valuable stock. "Investor focus remains on Nvidia's ability to continue to increase guidance well ahead of expectations," said Logan Purk, technology analyst at Edward Jones. "These guidance numbers provide data points for the potential for AI demand." Nvidia, which is expected to see overall revenues rise 83% from last year's third quarter to $31.16 billion, is likely to see that growth rate slow to around 66% over the three months ending in January. Blackwell demand in focus Much will depend, however, on its ability to overcome supply chain snarls and some early design flaws in its newly release line of Blackwell processors, which are faster and more energy-efficient, and deliver the "several billions" in sales that finance chief Collette Kress promised investors earlier this year. Wall Street forecasts for fourth quarter Blackwell revenues range from around $5 billion to as high as $8 billion, "Nvidia heads into earnings with elevated expectations," said Hightower's chief investment officer Stephanie Link. "The stock is up 172% YTD and 5% over the past month, with anticipation of a beat and raise tempered by potential revenue deceleration as the market awaits the next-gen Blackwell product." Related: Nvidia earnings on deck as AI kingpin tightens grip against rivals "It's important to weigh Nvidia's long-term growth prospects against the elevated expectations baked into its current valuation," she added. Analysts are largely agreed on the group's longer-term prospects, however, and have faith in its ability to overcome the supply constraints early next year and deliver on what CEO Jensen Huang has called the "insane" Blackwell demand. AI spending plans soar Nvidia's biggest customers, which include Meta Platforms (META) and Google parent Alphabet (GOOGL) as well as Amazon and Microsoft, have already committed to spending around $200 billion on AI-related projects this year. That tally is expected to rise to around $270 billion next year in what Amazon CEO Andy Jassy called a "once-in-a-lifetime" opportunity in generative AI. Total AI spending, which includes software, hardware and services, is likely to more than double to around $632 billion by 2028 from around $235 billion in 2023, according to IDC estimates. That could leave Nvidia in what Morgan Stanley describes as a "transition quarter" over the three months ending in January, as Blackwell delays and supply constraints temper near-term forecasts "but long-term confidence remains strong for Blackwell-driven growth." Related: Nvidia to reap billions in big tech AI spending KeyBanc Capital Markets analyst John Vinh also notes that Nvidia's H20 chip, designed to meet U.S. export restrictions on high-tech exports to China, could face both domestic competition as well as a nascent challenge from AMD's ne MI308 chip. He also noted the recent swapping of power providers to its Blackwell server rack, with Infineon reportedly replacing Monolithic Power MPWR, as an added near-near supply headwind. Stock volatility warning "We expect Nvidia to report strong F3Q results, which will solidly beat, driven by strong demand for Hopper, and guide F4Q modestly above consensus expectations," he said, but added that the "lack of more meaningful upside could pressure Nvidia near-term." Options traders, as a result, are bracing for big swings in Nvidia's stock price and see moves of around 9% in either direction when it reports after the close of trading. Related: Analysts revise Nvidia stock price targets as supply players update outlook With a market value of $3.6 trillion, that could mean lost or added value of around $320 billion in after-hours trading alone, moves that will have a significant impact on all three major benchmarks, each of which house Nvidia stock, when trading starts up again on Thursday. More AI Stocks: Wedbush analyst Dan Ives, a longtime Nvidia bull, isn't worried. "We believe another $2 billion beat and $2 billion quarter guide higher is the recipe for success that the Street wants to see from Jensen & Co.," he said, noting he expects Nvidia to beat third quarter revenues forecast a by $2 billion, and guide investors to a fourth quarter tally that is $2 billion higher than the current $37.1 billion forecast. "As use cases ramp across the enterprise world as seen by Palantir and others, Nvidia is the foundation of this AI spending wave and we expect another jaw dropper tomorrow from [CEO Jensen Huang] that will put jet fuel in this bull market engine," he added. Nvidia shares were marked 0.25% higher in premarket trading to indicate an opening bell price of $147.38 each. Related: Veteran fund manager sees world of pain coming for stocks

[19]

How Nvidia turned AI demand into a $35.1 billion windfall

Nvidia reported nearly doubled revenue of $35.1 billion for the quarter ending October 31, 2024, driven by soaring demand for its AI semiconductors. This marks a 94% increase compared to the same period last year, positioning Nvidia as a leader in artificial intelligence technology. Nvidia's data center business significantly contributed to the company's success, generating $30.8 billion in revenue -- a 112% year-over-year increase. The company anticipates revenue for the current quarter, ending January 2025, to reach approximately $37.5 billion, which could vary by 2%. After exceeding Wall Street's expectations for both sales and earnings, Nvidia's third-quarter report showcased continued rapid growth amid a rising global AI market. The company's market value reached $3.579 trillion, surpassing Apple's market cap of $3.461 trillion and placing Nvidia atop the S&P 500. With a staggering 195% stock increase this year, an investment of $100,000 made two years ago would be worth over $950,000 today. Nvidia's performance accounted for about 25% of the gains in the S&P 500 as of October 31, and it has recently replaced Intel in the Dow Jones Industrial Average. Analysts project Nvidia's revenue will rise to $126.5 billion for the fiscal year ending January 2025, significantly more than four times its earnings two years ago. The anticipated performance is further fueled by Nvidia's upcoming AI chip, Blackwell, which is expected to sustain this accelerated growth rate as demand for AI solutions remains strong. The introduction of Blackwell is anticipated to drive substantial revenue in the fourth quarter, with Nvidia's Chief Financial Officer Colette Kress noting that 13,000 samples have already been shipped to key customers. Significant investments from companies such as Microsoft, Oracle, and OpenAI in Nvidia's technology underscore the burgeoning market for AI applications. While the demand for Blackwell is high, Kress highlighted that supply constraints might occur in fiscal 2026. Cooling issues won't halt Blackwell AI chip sales, Nvidia claims In addition to data centers, Nvidia reported $3.28 billion in revenue from its gaming division, surpassing expectations of $3.03 billion. The increase in gaming revenue is attributed to higher demand for graphics processing units (GPUs) for PCs, laptops, and game consoles, including the Nintendo Switch. However, both Hopper and Blackwell systems face supply constraints, which could limit growth given the rising demand. Nvidia's automotive and professional visualization sectors generated $449 million and $486 million in sales, respectively, showcasing growth of 72% and 17% year-over-year. These segments may not be as large as the data center and gaming divisions, but they indicate Nvidia's diversification and adaptability in emerging technology markets.

[20]

Will Nvidia earnings prompt a sell-off? Wall Street is divided

The world's hottest company is back to wrap up tech earnings season as money managers are waiting nervously as Nvidia gets set to reveal its latest quarterly results on Wednesday afternoon. While Wall Street is expecting another strong showing for Q3 -- Visible Alpha predicts revenue will increase 84% year-over-year to $33.2 billion -- all eyes are on the chip giant's forecast for the final quarter of the year. That's because the company's next-generation GPU offering, or Blackwell, is scheduled to start hitting the bottom line. CEO Jensen Huang has touted "insane" demand for the new platform, which represents a dramatic step up in performance from the so-called "Hopper" chips that have fueled the AI boom. It's a dramatic show of innovation and strength from a company that has seen its shares skyrocket more than 800% over the last two years, with the company adding more than $3 trillion in market cap to trade places with Apple as the world's largest company. Wedbush Securities' Dan Ives, one of Wall Street's most prominent tech bulls, is anticipating another blowout release, saying that a $2 billion revenue beat and similar raise to Q4 guidance will signal that the AI party is just getting started. "We expect another jaw dropper tomorrow from the Godfather of AI Jensen that will put jet fuel in this bull market engine," Ives and other Wedbush analysts wrote in a note. Others who follow the stock, however, are sound more cautious note. Multiple analysts told Fortune Wednesday's call could prove to be a "sell the news" event. That's what happened last quarter, even though the company comfortably beat earnings and revenue expectations as sales grew over 122% year-over-year. The stock dropped 18% in the week following the call, trading just north of the $100 mark, as investors pocketed their gains. The stock has gained roughly 40% since, however. Shares rose about 4% Tuesday, moving above the $145 threshold, in anticipation of another blowout release. Nonetheless, the stage may be set for another round of immense profit taking, according to Ted Mortonson, a managing director and technology desk sector strategist at Baird. Retail investors, he said, often trade on "FOMO," or the fear of missing out. By contrast, he added, institutions will likely be driven by what he dubbed "FOGK." "That's fear of getting killed," he said. With the stock nearly tripling year-to-date, he explained, his clients have won. They aren't looking to give up those gains heading into the end of the year. How the stock moves after Wednesday's call will likely have a lot to do with what the company says about Blackwell. Jensen previously said the groundbreaking platform should account for "several billions" of additional revenue starting in Q4, but Angelo Zino, a vice president and senior analyst at CFRA Research, said he believes the Wednesday's forecast will be relatively conservative. Both he and Mortonson are unsurprised Blackwell's rollout has run into production delays. A recent report from The Information, a tech-focused publication, said overheating issues had compelled Nvidia to ask suppliers to adjust the design of the platform's server racks. Instead of simply selling standalone chips, Zino explained, Nvidia is marketing Blackwell as a platform offering with configurations that can be customized to fit different customers' needs. "You're talking about compute power and speeds on memory and networking that we've never seen before," Mortonson said. That also means there's many more moving parts on Nvidia's end, however. Zino said it's likely the delivery of some systems will be pushed to 2025, prompting the company to be less aggressive in issuing guidance. "Given that there's more that can go wrong, you want to provide a little bit of a buffer going into this January quarter," Zino said, "just in case." That could set up Nvidia for some more massive earnings beats early next year. By Nvidia's lofty standards, however, Wednesday's results and forecast could be a bit pedestrian. If that happens, Mortonson said, big investors could be quick on the trigger to sell. Retail traders, he added, are taking a knife to a gunfight. "It's a casino stock," he said, "so good luck to them."

[21]

euronews

Nvidia: Wall Street's most valuable company - how did it get there?

The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look at some of the figures. Nvidia has once again turned out quarterly results that exceeded Wall Street's forecasts. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue nearly doubled in the latest quarter from the same period a year earlier, Nvidia reported on Wednesday. The company expects further revenue growth in the current quarter that ends in January. Investors will be watching to see if demand for the company's next-generation AI chip called Blackwell can help it maintain the red-hot pace. The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look. Nvidia's total market value as of the close Wednesday at $3.579tn (€3.39tn), tops in the S&P 500. It regained the No. 1 sport from Apple ($3.461tn/€3.28tn) earlier this week. Microsoft is the only other company with a market value above $3tn ($3.089tn/€2.93tn). One year ago, Nvidia's market value was around $1.243tn (€1.18tn). Nvidia's stock price has risen by 195% so far this year as of the close of trading on Wednesday. A $100,000 (€948,424) investment in Nvidia two years ago would now be worth more than $950,000 (€901,003). Shares fell about 1% in after-hours trading following the release of the company's earnings. Some 25% of the S&P's 500 gain for the year could be attributed to Nvidia alone, as of 31 October. Nvidia replaced Intel in the Dow Jones Industrial Average earlier this month. Nvidia's revenue from its data centre business for the quarter ended 31 October was $30.8bn (€29.2bn), up 112% from a year ago. Overall revenue rose 94% from a year ago to $35.1bn (€33.3bn). By comparison, revenue growth for all the companies in the S&P 500 is expected to be about 5.5% for the latest quarter, according to FactSet. Nvidia's estimate for overall revenue in the fourth quarter, "plus or minus 2%" is some $37.5bn (€35.6bn). That translates to a range of between $36.8bn (€34.9bn) and $38.3bn (€36.3bn), compared with Wall Street's estimate of $37.1bn (€35.2bn). Revenue in the year-ago fourth quarter totalled $22.1bn (€21bn). Analysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025 will be $126.5bn (€120bn). That would be more than double its revenue for fiscal 2024 and more than four times its receipts the year before that.

[22]

Nvidia is in for larger beats as Blackwell rolls out, analysts say

Despite Nvidia's (NVDA-1.11%) modest guidance for its fiscal fourth quarter, analysts are anticipating larger earnings beats on strong demand for its new artificial intelligence platform. The chipmaker set its fiscal fourth quarter guidance at $37.5 billion, plus or minus 2% -- slightly above expectations of $37.09 billion, according to analysts' estimates compiled by FactSet (FDS+1.84%). Nvidia's expectations for the fiscal fourth quarter were "likely hampered by ongoing Blackwell shipment constraints," Kunjan Sobhani, senior industry analyst at Bloomberg Intelligence, said in a note. Nvidia chief executive Colette Kress said both Blackwell and its predecessor, Hopper, are facing certain supply constraints, and that Blackwell demand is expected to exceed supply into fiscal year 2026. The modest guidance sent Nvidia's shares slightly down in after-hours trading on Wednesday into Thursday morning. "Unfortunately, market participants have become too short-term oriented," Eric Clark, portfolio manager at the Rational Dynamic Brands Fund, said in a statement shared with Quartz. "Absolute good reports seem less interesting than relatively less good but still good. There is nothing wrong with NVDA, I suggest investors use any weakness to buy the stock because demand will be satisfied at some point and these slight misses will turn into big beats yet again." On the company's earnings call, Nvidia chief executive Jensen Huang said production of its Blackwell AI platform "is in full steam" after a design flaw was fixed, and that the company expects to deliver more Blackwells in this quarter than previously estimated. In the fiscal third quarter, Nvidia said it shipped thirteen thousand Blackwell chips to customers. "The supply chain team is doing an incredible job working with our supply partners to increase Blackwell, and we're going to continue to work hard to increase Blackwell through next year," Huang said. Nvidia is likely "sold out" of Blackwell until the end of next year, and "has much better visibility in its forecasts than it is letting on," Richard Windsor, founder of research firm Radio Free Mobile, said in a note. "This allows it to offer guidance that it knows it can beat by a small margin, which will help the share price hold onto the massive rally it has enjoyed over the last 18 months," Windsor said. Nvidia's shares are up over 198% so far this year. Concerns with Blackwell's commercial deliveries have not reflected in Nvidia's earnings reports yet, likely because issues mostly center on data center infrastructure around the chips, and because customers don't want "to lose their place in the queue" and are therefore buying Blackwell and fixing issues after, Windsor said. Huang addressed a report that Blackwell chips are overheating in custom-designed server racks, saying "as you see from all the systems that are being stood up, Blackwell is in great shape." He also said Nvidia plans "to execute on our annual road map" of producing new chips. Jefferies (JEF+2.86%) analysts said in a note that they "are not overly concerned with any of the issues on this call" and that they "see increasing beats as Blackwell ramps." But strong demand for Blackwell and Nvidia's ability to deliver to customers despite production issues might not sustain growth in the long-term. "Despite demand in the near-term continuing to be strong, we still believe a decline in demand for NVIDIA compute is inevitable as customers begin to scrutinize their ROI on AI compute," analysts at D.A. Davidson said in a note.

[23]

Market Screener

Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips

(AP) -- on Wednesday reported a surge in third-quarter profit and sales as demand for its specialized computer chips that power artificial intelligence systems remains robust. Investors took the results in stride, however, and Nvidia's high-flying stock slipped about 1% in after-hours trading. Shares in are up 195% so far this year. "The age of AI is in full steam, propelling a global shift to computing," , founder and CEO of , said in a statement. Nvidia's third-quarter data center revenue was , up 112% from a year ago. That growth was driven by demand for the Hopper computing platform for large language models, recommendation engines and generative AI applications, the company said. Analysts' were eyeing Nvidia's guidance on its Blackwell graphics processor unit, a next-generation artificial intelligence chip that's seen demand from companies like and others building AI data centers. Chief Financial Officer said Blackwell production shipments are scheduled to begin in the fourth quarter of fiscal 2025 and will continue to ramp into fiscal 2026. On an earnings call Wednesday, Kress told investors that both Hopper GPU and Blackwell systems "have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026." "Every customer is racing to be the first to market," Kress said. "Blackwell is now in the hands of all of our major partners, and they are working to bring up their data centers." The company, seen as a bellwether for AI demand, will deliver "more Blackwell than we have previously estimated" this quarter, Huang added. has led the artificial intelligence sector to become one of the stock market's biggest companies, as tech giants spend heavily on the company's chips and data centers needed to train and operate their AI systems. The company carved out an early lead in AI applications race, in part because of Huang's successful bet on the chip technology used to fuel the industry. The company is no stranger to big bets. Nvidia's invention of graphics processor chips, or GPUs, in 1999 helped spark the growth of the PC gaming market and redefined computer graphics. The company's third quarter gaming revenue rose to , an increase of 15% from a year ago. Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia's specialized chips over the last year. , the most valuable publicly traded company by market cap as of Wednesday morning, is now worth over , with analysts closely monitoring 's path to . Through the year's first six months, Nvidia's stock soared nearly 150%. At that point, the stock was trading at a little more than 100 times the company's earnings over the prior 12 months. That's much more expensive than it's been historically and than the S&P 500 in general. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission. , source

[24]

The Seattle Times

Nvidia doubles profit as AI chip sales soar

Nvidia, which dominates the market for computer chips used to build artificial intelligence, has become a Wall Street sensation. Over the past year, it has increased its market value by $2.5 trillion and dethroned Apple as the world's most valuable tech company. But Nvidia's success has raised questions about how long its run can last. On Wednesday, Nvidia showed that the world's seemingly insatiable appetite for AI technology could lift its business to new highs. The company, a bellwether for AI, topped Wall Street's expectations for the quarter, reporting that revenue jumped 94% from a year ago and profit increased by 106% during the three months that ended in October. Nvidia also projected that revenue in the current quarter would rise by 70% from a year ago to $37.5 billion, as it began selling a new, more powerful AI chip called Blackwell. The forecast exceeded Wall Street's prediction by about $500 million and suggested that customers were lining up to purchase the new chip. Revenue in the quarter ending in October was $35.08 billion, surpassing the company's estimate of $32.5 billion in August. Net income rose to $19.04 billion from $9.24 billion a year ago, exceeding the quarterly profits of Amazon and Meta. Shares in Nvidia fell 3% in after-hours trading, partly because its sales outlook was dampened by supply constraints on its new chip. The results are the latest proof that companies are continuing to pour billions of dollars into generative AI technology. Nvidia's chips, which can perform hundreds of tasks at the same time, are being purchased to power chatbots, write software code and discover new drugs. Those efforts have continued, even as some skeptics on Wall Street and in Silicon Valley question whether the financial return on those applications will justify their staggering costs. Nvidia gained a dominant position in AI because its CEO, Jensen Huang, bet that its semiconductors could be essential to building the technology. He spent years developing software and servers that would allow the chips, known as graphics processing units, or GPUs, to train systems in order to recognize images and predict words. The wager helped him corner 90% of the chip market. Huang has become one of AI's biggest proponents, saying its economic effect will be similar to the Industrial Revolution. He has traveled in recent weeks to India, Japan and Indonesia to encourage the countries and their companies to invest in building data centers. "The computer industry has fundamentally changed," Huang said in Japan last week. "From an industry that produced software, we have become an industry that is manufacturing artificial intelligence." Nvidia's projected sales for the current quarter were encouraging for investors. Many of them are betting that the company's newest chip, which is faster than its predecessor, will push sales higher. But the chip's development has been challenging. During a call with analysts in August, Nvidia said that it had to change the production process for the chip, because it wasn't manufacturing enough that worked properly. Huang assured analysts that wouldn't cause any delays. This month, Huang fulfilled that promise when Nvidia began shipping the first versions of the chip to customers. The premium version, which the company calls the GB200 NVL72, is a computer server with 72 GPUs that weighs 3,000 pounds and has a water-cooling system to prevent it from overheating. "We're all betting that there's a major inflection point coming in AI computing, and this is that product," said David Readerman, a portfolio manager at Endurance Capital Partners, an Nvidia investor. "But it's a complex product that requires new data center design, installation and performance." In addition to those challenges, Nvidia has faced government inquiries into its sales practices. The Justice Department, the European Union, Britain and China have all been looking into its business. The company has said that it will provide any information that regulators need. In the last quarter, Nvidia continued to dominate the market for AI data centers. The company reported that data centers sales rose 112% to $30.8 billion, with a majority of that coming from the sales of GPUs.

[25]

TechRadar

Nvidia almost doubles revenues as data center profits skyrocket

Nvidia's Q3 2025 revenue jumps 94% year-over-year to hit $35.1 billionCompany now has a market cap of more than $3.5 trillionNext-gen processors and more AI applications are on the way Nvidia has announced its latest financial results, showing company revenue is up a staggering 94% year-over-year as it continues on its journey to become the world's first $4 trillion company. Revenue for Q3 2025 stood at $35.1 billion, marking a 17% growth over the previous quarter's $30.0 billion and $18.12 billion in the same period last year. Nvidia's market cap, currently at $3.578 trillion, puts it a slice ahead of Apple and around half a trillion ahead of Microsoft. Much of Nvidia's success has been put down to its successful early entry to the AI market - its processors have now become synonymous with AI data center use. Of its entire revenue, its data center business accounted for $30.8 billion of Nvidia's figures, compared with just $3.3 billion from its gaming business, an area that it was previously best known for. "The age of AI is in full steam, propelling a global shift to Nvidia computing," noted Nvidia CEO Jensen Huang. Huang indicated that demand for Nvidia's products would continue: "Demand for Hopper and anticipation for Blackwell - in full production - are incredible as foundation model makers scale pretraining, post-training and inference." Samples of its Blackwell chips have already been shipped to major customers like Microsoft, OpenAI and Oracle. Next quarter, its final quarter of the financial year, Nvidia anticipates generating a revenue of $37.5 billion at the mid point. This would mark a more modest 7% increase, which would be a significant decrease from the previous quarters' growth of 122%, 262% and 265%. Looking ahead, Nvidia predicts that new applications for AI would continue to attract investment, fueling its growth, with Huang adding: "Industrial robotics investments are surging with breakthroughs in physical AI."

[26]

The New York Times

Nvidia's Profit and Revenue Jumps 90 Percent

Nvidia, which dominates the market for computer chips used to build artificial intelligence, has become a Wall Street sensation. Over the past year, it has increased its market value by $2.5 trillion and dethroned Apple as the world's most valuable tech company. But Nvidia's success has raised questions about how long its run can last. On Wednesday, Nvidia showed that the world's seemingly insatiable appetite for A.I. technology could lift its business to new highs. The company, a bellwether for A.I., topped Wall Street's expectations for the quarter, reporting that revenue jumped 94 percent from a year ago and profit increased by 106 percent during the three months that ended in October. Nvidia also projected that revenue in the current quarter would rise by 70 percent from a year ago to $37.5 billion, as it began selling a new, more powerful A.I. chip called Blackwell. The forecast exceeded Wall Street's prediction by about $500 million and suggested that customers were lining up to purchase the new chip. Revenue in the quarter ending in October was $35.08 billion, surpassing the company's estimate of $32.5 billion in August. Net income rose to $19.04 billion from $9.24 billion a year ago, exceeding the quarterly profits of Amazon and Meta. Shares in Nvidia fell 3 percent in after-hours trading, partly because its sales outlook was dampened by supply constraints on its new chip. The results are the latest proof that companies are continuing to pour billions of dollars into generative A.I. technology. Nvidia's chips, which can perform hundreds of tasks at the same time, are being purchased to power chatbots, write software code and discover new drugs. Those efforts have continued, even as some skeptics on Wall Street and in Silicon Valley question whether the financial return on those applications will justify their staggering costs. Nvidia gained a dominant position in A.I. because its chief executive, Jensen Huang, bet that its semiconductors could be essential to building the technology. He spent years developing software and servers that would allow the chips, known as graphics processing units, or GPUs, to train systems in order to recognize images and predict words. The wager helped him corner 90 percent of the chip market. Mr. Huang has become one of A.I.'s biggest proponents, saying its economic effect will be similar to the Industrial Revolution. He has traveled in recent weeks to India, Japan and Indonesia to encourage the countries and their companies to invest in building data centers. "The computer industry has fundamentally changed," Mr. Huang said in Japan last week. "From an industry that produced software, we have become an industry that is manufacturing artificial intelligence." Nvidia's projected sales for the current quarter were encouraging for investors. Many of them are betting that the company's newest chip, which is faster than its predecessor, will push sales higher. But the chip's development has been challenging. During a call with analysts in August, Nvidia said that it had to change the production process for the chip, because it wasn't manufacturing enough that worked properly. Mr. Huang assured analysts that wouldn't cause any delays. This month, Mr. Huang fulfilled that promise when Nvidia began shipping the first versions of the chip to customers. The premium version, which the company calls the GB200 NVL72, is a computer server with 72 GPUs that weighs 3,000 pounds and has a water-cooling system to prevent it from overheating. "We're all betting that there's a major inflection point coming in A.I. computing, and this is that product," said David Readerman, a portfolio manager at Endurance Capital Partners, an Nvidia investor. "But it's a complex product that requires new data center design, installation and performance." In addition to those challenges, Nvidia has faced government inquiries into its sales practices. The Justice Department, the European Union, Britain and China have all been looking into its business. The company has said that it will provide any information that regulators need. In the last quarter, Nvidia continued to dominate the market for A.I. data centers. The company reported that data centers sales rose 112 percent to $30.8 billion, with a majority of that coming from the sales of GPUs.

[27]

Wall Street avoids Nvidia sell-off after blowout earnings call

The lead-up to Nvidia's Wednesday's earnings release produced plenty of jitters on Wall Street, despite expectations of incredible growth. The Q3 results, put out after the bell, did not prompt the massive sell-off some feared, with the AI chip leader's stock dropping less than 2% in after-hours trading as management spoke to analysts on the call. Last quarter, a modest revenue and earnings beat was not enough to prevent a massive sell-the-news event, with the stock falling 18% in the week following the call. Some figured the stock could be due for another dip this time around with institutional investors eager to engage in profit-taking at the end the year. The stock held steady early Wednesday evening, however, as revenue jumped 94% year-over-year to $35.1 billion. The company's January guidance also came in better than expected, with the chip maker indicating it is confident about the rollout of its next-generation Blackwell platform. "The age of AI is in full steam, propelling a global shift to NVIDIA computing," Huang said in a press release. "Demand for Hopper and anticipation for Blackwell -- in full production -- are incredible as foundation model makers scale pretraining, post-training and inference." When it comes to the stock's short-term movement, investors might not be totally out of woods yet. Options trading ahead of the call implied a move just short of 8% in either direction, according to Bloomberg. That would roughly equate to a $300 billion swing in market value, bigger than the valuations of all but 24 of America's largest companies. Regardless, shareholders have been massively rewarded, particularly if they bought before or around the release of ChatGPT in 2022 and subsequent GenAI boom. The stock has appreciate 800% over the last two years, with the company adding more than $3 trillion in market cap to trade places with Apple as the world's largest company. Despite Nvidia's growth running up against the law of large numbers, Wall Street appears optimistic about the stock continuing to reward investors. As of Wednesday afternoon, roughly 90% of analysts surveyed by Bloomberg (or 68 out of 76) had a buy rating on the stock, compared to 8% placing a hold and under 3% advising to sell. Based on recent earnings and the Street's expectations, the stock is not incredibly expensive, either. Before the earnings call, the company's blended price to earnings ratio sat just north of 36, per Bloomberg. That represented just a 24% premium to the semiconductor industry. Besides the GenAI trade, semis have struggled mightily, Baird managing director Ted Mortonson told Fortune, amid a contraction in autos and flagging industrial demand in Europe. The PHLX Semiconductor Index, commonly known as SOX, is down about 8% year-to-date. "Nvidia has just been holding up the index," said Mortonson, who is also a tech desk sector strategist. On Wednesday, the world's hottest company continued to deliver.

[28]

U.S. News & World Report

Nvidia Is Wall Street's Most Valuable Company. How It Got There, by the Numbers

Nvidia has once again turned out quarterly results that exceeded Wall Street's forecasts. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue nearly doubled in the latest quarter from the same period a year earlier, Nvidia reported Wednesday. The company expects further revenue growth in the current quarter that ends in January. Investors will be watching to see if demand for the company's next-generation AI chip called Blackwell can help it maintain the red-hot pace. The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look. $3.579 trillion Nvidia's total market value as of the close Wednesday, tops in the S&P 500. It regained the No. 1 sport from Apple ($3.461 trillion) earlier this week. Microsoft is the only other company with a market value above $3 trillion ($3.089 trillion). One year ago, Nvidia's market value was around $1.243 trillion. 195% Gain in Nvidia's stock price so far this year as of the close of trading Wednesday. A $100,000 investment in Nvidia two years ago would now be worth more than $950,000. Shares fell about 1% in after-hours trading following the release of the company's earnings. 25% That's how much of the S&P 500's gain for the year could be attributed to Nvidia alone, as of Oct. 31. Nvidia replaced Intel in the Dow Jones Industrial Average earlier this month. $30.8 billion Nvidia's revenue from its data center business for the quarter ended Oct. 31, up 112% from a year ago. Overall revenue rose 94% from a year ago to $35.1 billion. By comparison, revenue growth for all the companies in the S&P 500 is expected to be about 5.5% for the latest quarter, according to FactSet. $37.5 billion Nvidia's estimate for overall revenue in the fourth quarter, "plus or minus 2%." That translates to a range of $36.8 billion to $38.3 billion, compared to Wall Street's estimate of $37.1 billion. Revenue in the year-ago fourth quarter totaled $22.1 billion. $126.5 billion Analysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025. That would be more than double its revenue for fiscal 2024 and more than four times its receipts the year before that. 54.6 billion The number of Thanksgiving meals one could buy with Nvidia's market value of $3.579 trillion, using the $65.51 estimated cost of a 15-item meal from retail intelligence provider Datasembly. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

[29]

BNN

Nvidia Forecast Fails to Meet the Loftiest Estimates for AI Star

Nvidia Corp. delivered a revenue forecast that failed to meet the highest expectations, showing that its dizzying AI-fueled growth run has its limits. Fiscal fourth-quarter sales will be about $37.5 billion, the company said in a statement Wednesday. Though the average analyst estimate was $37.1 billion, according to data compiled by Bloomberg, projections ranged as high as $41 billion. The outlook suggests that AI excitement may be getting ahead of reality. Nvidia investors bid up the shares nearly 200% in 2024, turning it into the world's most valuable company. But the chipmaker has had trouble keeping up with demand for its products and struggled with production snags this year. Shares of Nvidia fell about 5% in extended trading following the announcement. They previously closed at $145.89 in New York. Even with a disappointing outlook, Nvidia's growth over the past two years has been staggering. Its sales are poised to double for a second year in a row, and it now notches more money in profit than it used to generate in total revenue. The company's biggest moneymaker is its accelerator chip, which helps develop AI models by bombarding them with data. Since OpenAI's ChatGPT chatbot debuted in 2022, a frenzy of artificial intelligence services has created insatiable demand for the product. Other recent earnings reports have given strong signals for AI. Major Nvidia customers, including Microsoft Corp., Amazon.com Inc.'s AWS and Meta Platforms Inc., have reaffirmed their commitment to spend on AI infrastructure. Nvidia looks to stay ahead of rivals by accelerating its pace of innovation. That includes a commitment to updating its lineup annually. The company is currently introducing a design called Blackwell, which is faster and has an improved ability to link up with other chips. But manufacturing challenges have slowed the Blackwell rollout. For now, Nvidia can't fill all the orders it's receiving, the company has said. After production improves, supplies will be plentiful, according to Chief Executive Officer Jensen Huang. Nvidia has only missed analysts' estimates on quarterly revenue once in the past five years. And it has exceeded expectations by as much as 20% in recent periods, creating a high bar for its performance. Its data center division alone now has more revenue than its two nearest rivals, Intel Corp. and Advanced Micro Devices Inc., have in total combined. Net income this year is on course to exceed revenue at Intel, a business that was the chip industry's biggest company for decades. Nvidia made its name by selling graphics processors, but discovered that the technology also has applications for AI. Its chips help software models during the training process, when they learn to recognize and respond to real-world inputs. Nvidia's components are also used in systems that then run the software, a stage known as inference, and help power services such as ChatGPT. The Santa Clara, California-based company has rapidly expanded its product lineup to include networking, software and services, as well as fully built-out computer systems. Huang is traveling the world lobbying for a broader adoption of his technology and trying to spread its use by corporations and government agencies.

[30]

Nvidia Stock Just Did Something It Has Never Done Before. History Says the AI Stock Could Do This Next. | The Motley Fool

The Dow Jones Industrial Average (^DJI 0.97%) is a price-weighted index that tracks 30 U.S. companies. While inclusion is not based on strict rules, the index committee tends to select stocks that have three qualities: an excellent reputation, sustained growth, and widespread interest among investors. On Nov. 8, semiconductor company Nvidia (NVDA -3.22%) did something it has never done before: It joined the Dow Jones Industrial Average. Sherwin-Williams was added to the index at the same time, while chipmaker Intel and specialty chemicals producer Dow were removed. Importantly, while inclusion in the iconic index is validating, it has no bearing on business fundamentals like revenue and earnings. But stocks have generally produced positive returns during their first year in the Dow. Here's what that might mean for Nvidia shareholders. The Dow Jones Industrial Average was first introduced in 1896, and its composition has changed infrequently since its inception. Apart from Nvidia and Sherwin-Williams, and the addition of Amazon earlier this year, the most recent changes were made four years ago, when Amgen, Honeywell, Salesforce, and RTX (formerly Raytheon Technologies) were added to the index in 2020. Furthermore, excluding the three added this year, only 14 companies have joined the Dow Jones in the last 15 years. And their stocks returned a median of 9% during the 12-month period following their inclusion in the index. We can apply that information to Nvidia to make an educated guess about how the stock may perform in the coming months. Specifically, Nvidia traded near $149 per share when the market opened on Nov. 8, the day the company was added to the Dow Jones. If its share price appreciation aligns precisely with the historical median, Nvidia will trade at $162 per share in November 2025. That implies 12% upside from its current share price of $145. History also offers another interesting insight. While the last 14 stocks returned a median of 9% during their first 12 months in the Dow, the S&P 500 (^GSPC 0.35%) returned a median of 17% during the same period. So, most stocks have underperformed the S&P 500 during the 12 months following their inclusion in the Dow. Of course, Nvidia's future share price cannot be determined by looking backward. How the stock performs during the next year (and beyond) depends on the company's financial results and investor sentiment. Nvidia's graphics processing units (GPUs) are the industry standard in accelerating complex data center tasks like training machine learning models and running artificial intelligence (AI) applications. In fact, analysts at Forrester Research went so far as to write, "Without Nvidia's GPUs, modern AI wouldn't be possible." Nvidia reported excellent financial results in the third quarter, blowing by estimates on the top and bottom lines. Revenue increased 94% to $35 billion, and non-GAAP (generally accepted accounting principles) earnings surged 103% to $0.81 per diluted share. Nvidia's earnings have now increased at a triple-digit pace for six consecutive quarters. Of course, that trend cannot go on indefinitely, but investors still have good reason to be optimistic. CFO Colette Kress on the earnings call highlighted strong demand for Hopper GPUs, saying that H200 sales have ramped more quickly than any other product in company history. She also said the next-generation Blackwell GPU is in full production, and that "demand is staggering." Compared to Hopper, Blackwell chips can handle AI training tasks up to four times faster, and they can handle AI inference tasks up to 30 times faster. Kress also discussed the strong uptake of Nvidia AI Enterprise, a software platform that helps businesses build and deploy a broad range of AI applications, from recommender systems for retail to conversational agents for customer service. Kress told analysts that full-year revenue from Nvidia AI Enterprise software would more than double in the current year. She also said software and services revenue would exit the year at an annual run rate exceeding $2 billion. In mentioning all these products, my goal is to impress upon readers that Nvidia has a key advantage in its ability to monetize AI across hardware and software. Indeed, Blayne Curtis at Jefferies highlighted that competitive moat. "Nvidia is in control of the ecosystem on both the hardware and software front, and their current cadence of new generations should make that lead only growth further," he wrote in a note to clients. Looking ahead, Wall Street estimates Nvidia's adjusted earnings will grow at 38% annually through fiscal 2027, which ends in January 2027. That makes the current valuation of 56 times adjusted earnings look reasonable. Admittedly, Wall Street has set Nvidia with a high bar, and the stock could plunge if the company fails to meet those expectations. Even so, patient investors comfortable with volatility should consider buying a few shares today, even though new Dow Jones stocks have historically underperformed the S&P 500 during their first year in the index.

[31]

Nvidia CEO Jensen Huang Says The Present Time Is 'The Beginnings Of Two Fundamental Shifts In Computing' As Blackwell Powers Explosive AI Demand - NVIDIA (NASDAQ:NVDA), Oracle (NYSE:ORCL)

NVIDIA Corp NVDA revealed its robust financial performance and optimistic outlook, driven by an unprecedented wave of artificial intelligence infrastructure demand centered around its groundbreaking Blackwell systems. What Happened: Nvidia reported a staggering $35.1 billion in revenue for the third quarter, representing a remarkable 94% year-over-year increase. Data Center revenue alone reached $30.8 billion, up an astounding 112% from the previous year. CEO Jensen Huang described the current moment as "the beginnings of two fundamental shifts in computing," highlighting the transition from traditional coding to machine learning and the emergence of AI as a new industrial capability. The company's new Blackwell systems are at the center of this transformation. Huang noted that while they shipped zero Blackwell systems last quarter, they are now shipping billions of dollars worth, with demand "staggering" and supply racing to keep up. Oracle Corp ORCL has already announced plans for AI computing clusters that can scale to over 131,000 Blackwell GPUs. See Also: Michael Saylor's MicroStrategy Takes Wall Street By Storm, Becomes Second-Most Traded Stock After Nvidia One of the most closely watched aspects of the earnings call was Nvidia's gross margin projection. CFO Colette Kress provided clarity, stating that as Blackwell ramps up, gross margins will temporarily dip to the low 70% range -- potentially around 71-72.5% -- before quickly recovering to the mid-70s. "We will start growing into our gross margins," Kress explained, "and we hope to get to the mid-70s quite quickly as part of that ramp." Why It Matters: Nvidia's fourth-quarter revenue is projected at $37.5 billion, with continued strong demand for both Hopper and Blackwell systems. The company expects to ship more Blackwell systems in each subsequent quarter, indicating a robust and accelerating adoption curve. The company sees massive potential in modernizing global computing infrastructure for AI. Huang suggested that by 2030, computing data centers could be worth a couple of trillion dollars, with a multi-year transformation ahead. "We're going to continue to build out to modernize IT," Huang stated, "and then create these AI factories that are going to be for a new industry for the production of artificial intelligence." Price Action: Nvidia's stock closed at $145.89 on Wednesday, down 0.76% for the day. In after-hours trading, the stock dipped further by 2.53%. Year to date, Nvidia's stock has surged 202.86%, according to data from Benzinga Pro. Read Next: Bitcoin Hits $95K For The First Time Ever, Ethereum, Dogecoin Flat As Trump's Crypto Policy Takes Shape: Top Analyst Describes BTC's Path To $135K Image via Pexels Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

[32]

The Seattle Times

Nvidia is Wall Street's most valuable company. How it got there, by the numbers

[33]

ABC News

Nvidia is Wall Street's most valuable company. How it got there, by the numbers

Nvidia has once again turned out quarterly results that exceeded Wall Street's forecasts Nvidia has once again turned out quarterly results that exceeded Wall Street's forecasts. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue nearly doubled in the latest quarter from the same period a year earlier, Nvidia reported Wednesday. The company expects further revenue growth in the current quarter that ends in January. Investors will be watching to see if demand for the company's next-generation AI chip called Blackwell can help it maintain the red-hot pace. The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look. Nvidia's total market value as of the close Wednesday, tops in the S&P 500. It regained the No. 1 sport from Apple ($3.461 trillion) earlier this week. Microsoft is the only other company with a market value above $3 trillion ($3.089 trillion). One year ago, Nvidia's market value was around $1.243 trillion. Gain in Nvidia's stock price so far this year as of the close of trading Wednesday. A $100,000 investment in Nvidia two years ago would now be worth more than $950,000. Shares fell about 1% in after-hours trading following the release of the company's earnings. That's how much of the S&P 500's gain for the year could be attributed to Nvidia alone, as of Oct. 31. Nvidia replaced Intel in the Dow Jones Industrial Average earlier this month. Nvidia's revenue from its data center business for the quarter ended Oct. 31, up 112% from a year ago. Overall revenue rose 94% from a year ago to $35.1 billion. By comparison, revenue growth for all the companies in the S&P 500 is expected to be about 5.5% for the latest quarter, according to FactSet. Nvidia's estimate for overall revenue in the fourth quarter, "plus or minus 2%." That translates to a range of $36.8 billion to $38.3 billion, compared to Wall Street's estimate of $37.1 billion. Revenue in the year-ago fourth quarter totaled $22.1 billion. Analysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025. That would be more than double its revenue for fiscal 2024 and more than four times its receipts the year before that. The number of Thanksgiving meals one could buy with Nvidia's market value of $3.579 trillion, using the $65.51 estimated cost of a 15-item meal from retail intelligence provider Datasembly.

[34]

Economic Times

Nvidia is Wall Street's most valuable company. How it got there, by the numbers

Nvidia surpassed Wall Street predictions, reporting doubled revenue due to high demand for its semiconductors used in AI. The company anticipates further growth. Nvidia's market value reached $3.579 trillion, regaining the top position in the S&P 500. Its data center business revenue surged by 112%. Analysts project Nvidia's revenue to reach $126.5 billion by fiscal year 2025.Nvidia has once again turned out quarterly results that exceeded Wall Street's forecasts. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue nearly doubled in the latest quarter from the same period a year earlier, Nvidia reported Wednesday. The company expects further revenue growth in the current quarter that ends in January. Investors will be watching to see if demand for the company's next-generation AI chip called Blackwell can help it maintain the red-hot pace. The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look. $3.579 trillion Nvidia's total market value as of the close Wednesday, tops in the S&P 500. It regained the No. 1 sport from Apple ($3.461 trillion) earlier this week. Microsoft is the only other company with a market value above $3 trillion ($3.089 trillion). One year ago, Nvidia's market value was around $1.243 trillion. 195% Gain in Nvidia's stock price so far this year as of the close of trading Wednesday. A $100,000 investment in Nvidia two years ago would now be worth more than $950,000. Shares fell about 1% in after-hours trading following the release of the company's earnings. 25% That's how much of the S&P 500's gain for the year could be attributed to Nvidia alone, as of Oct. 31. Nvidia replaced Intel in the Dow Jones Industrial Average earlier this month. $30.8 billion Nvidia's revenue from its data center business for the quarter ended Oct. 31, up 112% from a year ago. Overall revenue rose 94% from a year ago to $35.1 billion. By comparison, revenue growth for all the companies in the S&P 500 is expected to be about 5.5% for the latest quarter, according to FactSet. $37.5 billion Nvidia's estimate for overall revenue in the fourth quarter, "plus or minus 2%." That translates to a range of $36.8 billion to $38.3 billion, compared to Wall Street's estimate of $37.1 billion. Revenue in the year-ago fourth quarter totaled $22.1 billion. $126.5 billion Analysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025. That would be more than double its revenue for fiscal 2024 and more than four times its receipts the year before that. 54.6 billion The number of Thanksgiving meals one could buy with Nvidia's market value of $3.579 trillion, using the $65.51 estimated cost of a 15-item meal from retail intelligence provider Datasembly.

[35]

AP NEWS

Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips

LOS ANGELES (AP) -- Nvidia on Wednesday reported a surge in third-quarter profit and sales as demand for its specialized computer chips that power artificial intelligence systems remains robust. For the three months that ended Oct. 27, the tech giant based in Santa Clara, California, posted revenue of $35.08 billion, up 94% from $18.12 billion a year ago. Nvidia said it earned $19.31 billion in the quarter, more than double the $9.24 billion it posted in last year's third quarter. Adjusted for one-time items, it earned 81 cents a share. Wall Street analysts had been expecting adjusted earnings of 75 cents a share on revenue of $33.17 billion, according to FactSet. Investors took the results in stride, however, and Nvidia's high-flying stock slipped about 1% in after-hours trading. Shares in Nvidia Corp. are up 195% so far this year. "The age of AI is in full steam, propelling a global shift to Nvidia computing," Jensen Huang, founder and CEO of Nvidia, said in a statement. Analysts' were eyeing Nvidia's guidance on its Blackwell graphics processor unit, a next-generation artificial intelligence chip that's seen demand from companies like OpenAI and others building AI data centers. Over the summer, the tech juggernaut said it would increase production of its Blackwell AI chips beginning in the fourth quarter and continuing through fiscal 2026. Huang said in an interview with CNBC last month that demand for Blackwell is "insane." "Everybody wants to have the most and everybody wants to be first," Huang said. Nvidia has led the artificial intelligence sector to become one of the stock market's biggest companies, as tech giants spend heavily on the company's chips and data centers needed to train and operate their AI systems. The company carved out an early lead in AI applications race, in part because of Huang's successful bet on the chip technology used to fuel the industry. The company is no stranger to big bets. Nvidia's invention of graphics processor chips, or GPUs, in 1999 helped spark the growth of the PC gaming market and redefined computer graphics. Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia's specialized chips over the last year. Nvidia, the most valuable publicly traded company by market cap as of Wednesday morning, is now worth over $3.5 trillion, with analysts closely monitoring Nvidia's path to $4 trillion. Through the year's first six months, Nvidia's stock soared nearly 150%. At that point, the stock was trading at a little more than 100 times the company's earnings over the prior 12 months. That's much more expensive than it's been historically and than the S&P 500 in general.

[36]

ABC News

Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips

LOS ANGELES -- Nvidia on Wednesday reported a surge in third-quarter profit and sales as demand for its specialized computer chips that power artificial intelligence systems remains robust. For the three months that ended Oct. 27, the tech giant based in Santa Clara, California, posted revenue of $35.08 billion, up 94% from $18.12 billion a year ago. Nvidia said it earned $19.31 billion in the quarter, more than double the $9.24 billion it posted in last year's third quarter. Adjusted for one-time items, it earned 81 cents a share. Wall Street analysts had been expecting adjusted earnings of 75 cents a share on revenue of $33.17 billion, according to FactSet. Investors took the results in stride, however, and Nvidia's high-flying stock slipped about 1% in after-hours trading. Shares in Nvidia Corp. are up 195% so far this year. "The age of AI is in full steam, propelling a global shift to Nvidia computing," Jensen Huang, founder and CEO of Nvidia, said in a statement. Analysts' were eyeing Nvidia's guidance on its Blackwell graphics processor unit, a next-generation artificial intelligence chip that's seen demand from companies like OpenAI and others building AI data centers. Over the summer, the tech juggernaut said it would increase production of its Blackwell AI chips beginning in the fourth quarter and continuing through fiscal 2026. Huang said in an interview with CNBC last month that demand for Blackwell is "insane." "Everybody wants to have the most and everybody wants to be first," Huang said. Nvidia has led the artificial intelligence sector to become one of the stock market's biggest companies, as tech giants spend heavily on the company's chips and data centers needed to train and operate their AI systems. The company carved out an early lead in AI applications race, in part because of Huang's successful bet on the chip technology used to fuel the industry. The company is no stranger to big bets. Nvidia's invention of graphics processor chips, or GPUs, in 1999 helped spark the growth of the PC gaming market and redefined computer graphics. Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia's specialized chips over the last year. Nvidia, the most valuable publicly traded company by market cap as of Wednesday morning, is now worth over $3.5 trillion, with analysts closely monitoring Nvidia's path to $4 trillion. Through the year's first six months, Nvidia's stock soared nearly 150%. At that point, the stock was trading at a little more than 100 times the company's earnings over the prior 12 months. That's much more expensive than it's been historically and than the S&P 500 in general.

[37]

Economic Times

Nvidia is Wall Street's most valuable company: how it got there, by the numbers

Revenue nearly doubled in the latest quarter from the same period a year earlier, Nvidia reported Wednesday. The company expects further revenue growth in the current quarter that ends in January.Nvidia has once again turned out quarterly results that exceeded Wall Street's forecasts. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue nearly doubled in the latest quarter from the same period a year earlier, Nvidia reported Wednesday. The company expects further revenue growth in the current quarter that ends in January. Investors will be watching to see if demand for the company's next-generation AI chip called Blackwell can help it maintain the red-hot pace. The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look. $3.579 trillion: Nvidia's total market value as of the close Wednesday, tops in the S&P 500. It regained the No. 1 sport from Apple ($3.461 trillion) earlier this week. Microsoft is the only other company with a market value above $3 trillion ($3.089 trillion). One year ago, Nvidia's market value was around $1.243 trillion. 195%: Gain in Nvidia's stock price so far this year as of the close of trading Wednesday. A $100,000 investment in Nvidia two years ago would now be worth more than $950,000. Shares fell about 1% in after-hours trading following the release of the company's earnings. 25%: That's how much of the S&P 500's gain for the year could be attributed to Nvidia alone, as of Oct. 31. Nvidia replaced Intel in the Dow Jones Industrial Average earlier this month. $30.8 billion: Nvidia's revenue from its data center business for the quarter ended Oct. 31, up 112% from a year ago. Overall revenue rose 94% from a year ago to $35.1 billion. By comparison, revenue growth for all the companies in the S&P 500 is expected to be about 5.5% for the latest quarter, according to FactSet. $37.5 billion: Nvidia's estimate for overall revenue in the fourth quarter, "plus or minus 2%." That translates to a range of $36.8 billion to $38.3 billion, compared to Wall Street's estimate of $37.1 billion. Revenue in the year-ago fourth quarter totaled $22.1 billion. $126.5 billion: Analysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025. That would be more than double its revenue for fiscal 2024 and more than four times its receipts the year before that. 54.6 billion: The number of Thanksgiving meals one could buy with Nvidia's market value of $3.579 trillion, using the $65.51 estimated cost of a 15-item meal from retail intelligence provider Datasembly.

[38]

Investopedia

Nvidia Analysts Grow More Bullish on Chipmaker's Stock After Strong Earnings

After Nvidia (NVDA) reported record quarterly revenue driven by gains in its data center sales and raised expectations for its Blackwell artificial intelligence (AI) chips, several analysts boosted their price targets for the chipmaker's stock. Wedbush analysts lifted their price target to $175 from $160, implying about 21% upside from Thursday's intraday price, pointing to strong demand for Nvidia's AI chips and signs production of its next-generation Blackwell chip is "ramping at least as fast as expected." On the company's earnings call, CEO Jensen Huang said Nvidia is on track to ship more Blackwell chips than previously anticipated in the current quarter, which runs through January. Analysts at Mizuho raised their price target to $175 from $165 after the call, projecting up to $5 billion in Blackwell revenue in the period. Nvidia also appeared to dismiss worries surrounding reported Blackwell issues with overheating, which "should alleviate any lingering investor concerns around Blackwell execution," Wedbush analysts wrote. Shares of Nvidia wavered between gains and losses early Thursday, and were about 1% lower at $144.57 in midday trading. The stock has nearly tripled in value since the start of the year. Wedbush analysts also suggested Nvidia could be poised to lead a tech rally into year-end and 2025 after its strong results, with a ripple effect from spending on its chips that could boost the broader tech industry. The analysts estimated that every $1 spent on an Nvidia GPU could have an $8 to $10 multiplier effect across the tech sector.

[39]

AP NEWS

Nvidia is Wall Street's most valuable company. How it got there, by the numbers

Nvidia has once again turned out quarterly results that exceeded Wall Street's forecasts. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue nearly doubled in the latest quarter from the same period a year earlier, Nvidia reported Wednesday. The company expects further revenue growth in the current quarter that ends in January. Investors will be watching to see if demand for the company's next-generation AI chip called Blackwell can help it maintain the red-hot pace. The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look. Nvidia's total market value as of the close Wednesday, tops in the S&P 500. It regained the No. 1 sport from Apple ($3.461 trillion) earlier this week. Microsoft is the only other company with a market value above $3 trillion ($3.089 trillion). One year ago, Nvidia's market value was around $1.243 trillion. Gain in Nvidia's stock price so far this year as of the close of trading Wednesday. A $100,000 investment in Nvidia two years ago would now be worth more than $950,000. Shares fell about 1% in after-hours trading following the release of the company's earnings. That's how much of the S&P 500's gain for the year could be attributed to Nvidia alone, as of Oct. 31. Nvidia replaced Intel in the Dow Jones Industrial Average earlier this month. Nvidia's revenue from its data center business for the quarter ended Oct. 31, up 112% from a year ago. Overall revenue rose 94% from a year ago to $35.1 billion. By comparison, revenue growth for all the companies in the S&P 500 is expected to be about 5.5% for the latest quarter, according to FactSet. Nvidia's estimate for overall revenue in the fourth quarter, "plus or minus 2%." That translates to a range of $36.8 billion to $38.3 billion, compared to Wall Street's estimate of $37.1 billion. Revenue in the year-ago fourth quarter totaled $22.1 billion. Analysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025. That would be more than double its revenue for fiscal 2024 and more than four times its receipts the year before that. The number of Thanksgiving meals one could buy with Nvidia's market value of $3.579 trillion, using the $65.51 estimated cost of a 15-item meal from retail intelligence provider Datasembly.

[40]

Nvidia crushes expectations, reporting a 94% increase in revenue as AI demand booms

Nvidia's third quarter results came in better than expected as the company beat the already soaring expectations placed at its feet, according to a highly anticipated earnings call. Revenues for the quarter were $35.1 billion, up 94% from a year ago and a 17% increase from the previous quarter. Profits were $19.3 billion, an increase of 109% from the same time last year. Gross margins dipped slightly to 74.6% this quarter from 75.1% in the second quarter. Even that though was better than expected. UBS had forecasted a 200 basis point reduction in gross margin, according to analyst note from earlier this month. GAAP earnings per share were up 111% compared to last year for $0.78 a share. "Explosive earnings again," said Alonso Munoz, chief investment officer of Hamilton Capital Partners. The stock market darling and prime beneficiary of the AI boom was expected to deliver another stand out quarter. Anything less would have disappointed the markets. Nvidia beat expectations on all fronts outperforming analyst forecasts on growth. The prime concern for the stock, which has been on a meteoric 200% rise since the start of the year, remains whether it can continue to grow at the pace it has so far. The $35.1 billion in revenue topped expectations that were meant to be somewhere in the $34 billion to $35 billion range. The bulk of Nvidia's revenue comes from its data center business that encompasses sales of the components used to power AI products. Revenue for that division was $30.8 billion, higher than the roughly $28 billion some had expected. The lead-up to the earnings call did feature some amount of trepidation. The stock fell 1% on Wednesday before the earnings report, set to be released after market close. Shares fell 2% in after-hours trading. The moves in the stock were expected, as investors sought to harvest gains by selling at what they believed to be the peak. Investors that continue to hold the stock have to grit their teeth and believe in the company's continued growth trajectory, which it showed yet again. "We're sanguine about the fact that we expected this," Munoz said. On the call, Nvidia CEO Jensen Huang addressed the demand for its new Blackwell chips. Huang said the company was delivering more Blackwell chips this quarter than expected. "Blackwell production is in full steam," Huang said. Investors had previously questioned whether there were production delays in the new chip. Concerns were further heightened this week when the tech publication The Information reported that Blackwell was overheating in certain data center racks. Nvidia said it was "normal and expected" that certain customers had to change the configuration of its data center racks. Perhaps the one lingering concern is that the immediate rollout of Blackwell should see a slight drop in gross margin toward the low-70s, Nvidia chief financial officer Collette Kress said on the call. She added that drop was expected to be temporary. "We will start growing into our gross margins," Kress said.

[41]

DIGITIMES

Nvidia outpaces revenue estimates with strong data center growth amid mixed analyst reactions

Nvidia issued a revenue forecast that fell short of the most optimistic projections, hinting at potential limits to its rapid growth. Despite this tempered outlook, the company's performance has been remarkable over the past two years. Nvidia is on track to double its sales for the second consecutive year, achieving profits that surpass its former total revenue. According to the latest financial results released on November 20, Nvidia reported fiscal third-quarter revenue of US$ 35.08 billion, marking a 94% year-over-year increase and surpassing Bloomberg's estimate of US$33.25 billion. The gross margin remained steady at 75%, consistent with the previous year. Operating income nearly doubled, reaching US$23.28 billion compared to US$11.56 billion in the same period last year. The data center segment was a standout performer, generating revenue of US$30.8 billion, more than doubling from US$14.51 billion in the previous year and exceeding the estimated US$29.14 billion. The growth momentum extended to other divisions as well. The gaming sector achieved a revenue of US$3.3 billion, reflecting a 15% increase year-over-year, surpassing the forecast of US$3.06 billion. Professional visualization revenue rose by 17% to US$486 million, slightly above the anticipated US$477.7 million. Meanwhile, the automotive division experienced a significant surge, with revenue climbing by 72% to US$449 million, exceeding expectations of US$364.5 million. Rising demands across geographies The US is still the largest market for Nvidia over the last quarter, while the company saw surging demands from Singapore and Other markets as companies and governments worldwide procured Nvidia chips to build their AI infrastructure. Notably, as Nvidia CFO Colette Kress said in a prepared mark that CSPs accounted for about half of Nvidia's data center revenue, indicating AWS, Google Cloud, and Azure are acquiring Hopper or Blackwell in their data centers around the world Despite the US export curbs that restrict the most advanced Nvidia chips from shipping to China, the country is the third-largest market for Nvidia, which registered a 34.39% revenue growth from the region. Fourth-quarter outlook In the fourth quarter forecast, Nvidia anticipates a gross margin between 73% and 74%, with the current Bloomberg consensus estimate set at 73.5%. Revenue for the quarter is projected to be US$37.5 billion, plus or minus 2%, compared to a Bloomberg estimate of US$37.1 billion. Operating expenses are expected to be approximately US$3.4 billion, surpassing the estimated US$3.21 billion. The company has expressed strong enthusiasm about the demand for its products, particularly noting that the anticipation for Blackwell is incredible. "The age of AI is in full steam, propelling a global shift to Nvidia computing," said Jensen Huang, founder and CEO of Nvidia. "Demand for Hopper and anticipation for Blackwell -- in full production -- are incredible as foundation model makers scale pretraining, post-training, and inference. What did analysts say Nvidia's recent forecast has prompted mixed reactions among analysts, but there is a consensus that concerns over the company's outlook may be temporary. According to Bloomberg Intelligence, while Nvidia's projection to surpass the fourth quarter sales consensus by approximately 1% did not meet the most optimistic estimates, its expectations for a significant ramp-up in Blackwell by fiscal 2026 and stabilizing margin views suggest a focus shift toward the company's robust long-term fundamentals. From the perspective of vital knowledge, Nvidia's results demonstrate a "decent upside," despite a "slightly negative" initial reaction due to guidance that was merely "inline" and a shortfall in networking sales in the third fiscal quarter. Analysts note that the high bar set for Nvidia and the crowded nature of the stock does not detract from the firm's sustained bullish outlook. This sentiment is fueled by Nvidia's substantial growth and limited competition, which underpin the positive view of its prospects. Meanwhile, CFRA points to supply constraints affecting Nvidia's Hopper and Blackwell solutions, projecting that these limitations will persist through at least the calendar year 2025. These solutions are anticipated to drive the next wave of data centers for major hyperscalers. Despite the current hurdles, the company's strategic positioning and innovation boon offer a promising horizon for investors and stakeholders alike.

[42]

Economic Times

Nvidia's AI chip demand still booming but slowing sales growth worries investors

Nvidia forecast its slowest revenue growth in seven quarters on Wednesday, with the artificial intelligence chipmaker failing to meet lofty expectations of some investors who have made it the world's most valuable firm. Shares of the Santa Clara, California-based company fell 5% after it posted results but quickly pared losses to trade down 2.5% after hours. During the regular session they closed 0.8% lower. Expectations ran high ahead of the results, with Nvidia shares up more than 20% over the last two months and hitting an intraday record high on Monday. The stock has nearly quadrupled so far this year and is up more than ninefold over the last two years, giving it a market value of $3.6 trillion. Nvidia is in the middle of launching its powerful Blackwell family of AI chips, which will weigh on the company's gross margins initially but improve over time. The new line of processors has been embraced by Nvidia's customers and the company will exceed its initial projections of several billion dollars in sales of the processors in the fourth quarter, Chief Financial Officer Colette Kress told analysts on a conference call on Wednesday. Asked about media reports that a flagship liquid-cooled server containing 72 of the new chips was experiencing overheating issues during initial testing, CEO Jensen Huang said there are no issues and customers such as Microsoft, Oracle and CoreWeave are implementing the systems. "There are no issues with our Grace Blackwell liquid-cooled systems," Huang told Reuters. "The engineering is not easy at all, because what we're doing is hard, but we're in good shape." Initially its Blackwell family of chips will carry gross margins in the low 70% range, but will increase to the mid-70% range when production ramps up, Kress said. The company forecast revenue of $37.5 billion, plus or minus 2% for the fourth quarter, compared with analysts' average estimate of $37.09 billion according to data compiled by LSEG. While still a stunning rate of growth thanks to huge demand for the company's chips that make up the brains of complex generative AI systems, it marks a clear slowdown from previous quarters when Nvidia mostly posted sales that at least doubled. Nvidia's fourth-quarter forecast indicated the company's revenue growth will slow to roughly 69.5% from 94% in the third-quarter. "Investors have become accustomed to huge beats from this company, but doing that is getting harder and harder," said Ryan Detrick, chief market strategist at Carson Group. "This was still a very solid report, but the truth is when the bar is this high it makes things just that much tougher." The slowdown in revenue growth, however, obfuscates enormous demand for the company's AI chips, which dominate the market. Supply chain snags have made it harder for Nvidia to report the big beats on revenue that have helped make it a Wall Street darling. But growth could pick up again if the company's margins exceed 75%, said IDC analyst Brandon Hoff. One of the bottlenecks for its chip supply has been the limited capacity for advanced manufacturing techniques at the company's fabrication partner TSMC. Huang declined to comment on specific production issues with TSMC but also told Reuters that "as we ramp (Blackwell) up, we'll keep increasing more production lines, and we'll keep improving our yield, and we improve our cycle time. All of that would improve our outputs." The yield refers to the number of working chips per wafer. The company said it had fixed a design flaw with its Blackwell chips by changing the blueprints used by TSMC to manufacture it. TSMC shares were down about 1% in early Asian trading on Thursday. Nvidia recorded third-quarter adjusted earnings of 81 cents per share, compared with estimates of 75 cents per share. Sales in the data center segment, which accounts for a majority of Nvidia's revenue, grew 112% to $30.77 billion in the quarter ended Oct. 27. The segment had recorded growth of 154% in the prior quarter. Nvidia's sales are boosted by cloud companies' continued spending on its chips, as they expand data centers capable of handling generative AI's complex processing needs. The company said adjusted gross margin shrank to 75%.

[43]

The Seattle Times

Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips

[44]

U.S. News & World Report

Nvidia Beats Earnings Expectations as Investors Eye Demand for Blackwell AI Chips

[45]

Investors want to see a 'bullish' Nvidia in its earnings report, analyst says

The stock market risks of Nvidia's success, according to a strategist With Nvidia's fiscal third quarter results coming imminently, those expectations are still "incredibly high," Daniel Newman, chief executive of The Futurum Group, told Quartz. "We know from the last quarter what happens if they are too conservative," Newman said. "People want to see it be bullish." Nvidia is still in the cycle where expectations are palpable and meeting expectations is not enough -- investors want to hear a beat, Newman said. The chipmaker is expected to set fiscal fourth quarter guidance at $37.09 billion, according to analysts' estimates compiled by FactSet (FDS-1.69%). "To support the stock on earnings day," Nvidia will have to report fiscal fourth quarter guidance of at least $38 billion, John Belton, portfolio manager at Gabelli Funds, said in comments shared with Quartz. Investors are also expecting updates on Blackwell, both Belton and Newman said, separately, amid reports that the highly-anticipated artificial intelligence chips are overheating when connected on custom-designed server racks that combine 72 of the company's GPUs, or graphics processing units. However, Dell (DELL-2.40%) said it has started shipping Nvidia's GB200 NVL72 server racks, and Microsoft (MSFT-1.07%) announced a private preview of the Blackwell AI infrastructure on its Azure cloud computing platform. Blackwell experienced production and shipping delays earlier this year due to a design flaw that was fixed, Nvidia chief executive Jensen Huang said in October, after media reports about the issue surfaced in August. Before Huang addressed the design flaw, Nvidia's shares got a boost after he said Blackwell was in full production and demand for the chip was "insane." "People want confirmation on Blackwell and margin integrity," Newman said, adding that Blackwell revenue will come into play during the next earnings cycle. "People want to see how much enthusiasm there is," and if the numbers can provide a positive outlook that the market wants to hear. Nvidia has already announced its next-generation AI chip platform, Rubin, which will come after Blackwell in 2026. The Rubin platform will include new GPUs and a new central processing unit (CPU) called Vera, as well as advanced networking chips. During the company's fiscal first-quarter earnings call, Huang said the chipmaker is "on a one-year rhythm" with producing new chips. Investors will want to hear Nvidia's roadmap for Rubin and if it can sustain its annual cycle, as well as whether its small but mighty customer base can continue buying at a fast rate while delivering returns, Newman said. Additionally, investors will be interested in Nvidia's ability to keep its 92% share of the data center GPU market, including its plans to maintain pricing power and growth on the path to a $4 trillion valuation. Meanwhile, "Nvidia's foray into the autonomous vehicles and other automotive electronics space is a positive," Brian Mulberry, client portfolio manager at Zacks Investment Management, said in comments shared with Quartz. "Notably, Nvidia's focus on incorporating AI into the cockpit for infotainment systems is allowing it to grow its autonomous driving revenues."

[46]

Nvidia's Post-Earnings Jitters: Can NVDA Stock Regain Its AI-Fueled Momentum? - NVIDIA (NASDAQ:NVDA)

Technicals remain bullish for Nvidia stock, with price above key moving averages and strong MACD signals. Despite the stellar numbers in its latest earnings report, Nvidia Corp NVDA stock slipped 3% in after-hours trading on Wednesday. In premarket Thursday, Nvidia shares swung between gains and losses, ultimately opening 5% higher before losing steam. By mid-morning, Nvidia shares were down 1.23%, trading at $144.10 -- a move many attribute to the priced-for-perfection environment surrounding the AI giant. It seems the market's insatiable appetite for upside surprises left even Nvidia's blockbuster results struggling to impress. See Also: Nvidia Analysts See Stock 'Best Positioned In AI,' Not Worried About Guidance: 'All Systems Go For Blackwell Ramp' Nvidia Stock's Underlying Resilience The Santa Clara, California-based company reported an 8% beat on earnings per share and a nearly 6% revenue beat compared to estimates. Revenue soared 93.71% year-over-year, reaching $35.1 billion, fueled by the relentless demand for AI chips. Despite Thursday's volatile trading, Nvidia's technical indicators suggest underlying resilience. Chart created using Benzinga Pro Read Also: US Futures Head Lower As Nvidia Earnings Fail To Impress Investors: Expert Says Market Weakness Is 'Perfectly Normal,' But Late November Rally Is Still Possible The stock is trading above its eight-day, 20-day, 50-day and 200-day simple moving averages, signaling a strong bullish foundation: 8-day SMA: Nvidia sits at $145.29, above its $145.20 SMA, generating a short-term bullish signal. 20-day SMA: The stock's $145.29 price exceeds the $142.79 average, reinforcing the bullish narrative. 50-day SMA: Nvidia's $145.29 eclipses its 50-day average of $133.52, pointing to solid momentum. 200-day SMA: At $110.41, the 200-day average remains far below current levels, reflecting long-term bullish strength. The MACD (moving average convergence/divergence) indicator also supports a bullish outlook with a reading of 3.19, while the RSI (relative strength index) at 56.51 shows the stock is comfortably neutral, leaving room for further upward movement without triggering overbought alarms. Can Nvidia Break Free? Nvidia's fundamentals remain as robust as its AI ambitions, but the question lingers: Can the stock sustain its high-altitude trajectory amid sky-high expectations? Investors will be watching closely as Nvidia tries to stabilize after its earnings-induced turbulence. Read Next: Nvidia Vs. Bitcoin: Jensen Huang-Led Chip Giant's Stock Outperformed The Top Cryptocurrency Over 5 Years. Here's How They Compare On Other Metrics Image: Unsplash Market News and Data brought to you by Benzinga APIs

[47]

Seeking Alpha

The Meteoric Rise Of Nvidia

Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Spotify. The grand finale of earnings season is here, with a lot riding on Nvidia's (NVDA) Q3 results after the bell. Expect impressive numbers due to explosive AI and data center demand, though the level of growth and guidance should be of more importance to the Nvidia story. Margins are also on watch as the company ramps up its Blackwell GPUs, as well as whether overheating issues related to the coveted processors are real or fake news. Note that options trading should lead to big price swings no matter what is said or reported, so zooming out to see the overall picture may be necessary instead of hurrah post-earnings. Up, up and away: Nvidia really took off following the release of ChatGPT in late 2022, which brought on the "Generative AI" revolution. The market darling tripled in 2023, and while there were some initial worries whether there could be an AI bubble, Seeking Alpha subscribers were correct in their assessment as things kept rolling. Nvidia tripled in price again in 2024, showing the staying power of the AI rally. Putting it in perspective, an investor who bought $10,000 worth of Nvidia (NVDA) in January 2022 would be sitting on over $100,000 worth of shares today. For all the recent rage enveloping the crypto world, a comparable investment in Bitcoin (BTC-USD) at the start of 2022 would only be worth $20,000 today. While one can play around with positions and time frames, the movement conveys how strong of a force Nvidia has been for the markets and its status as one of the heaviest lifters of the S&P 500. Commentary: SA analysts have weighed in ahead of the earnings, including an article from Millennial Dividends on how large Nvidia can grow realistically and some technical analysis from Michael James McDonald. There have additionally been some bullish notes from the Street, including "smooth Blackwell progress" at Wells Fargo and a price target boost at Truist and Stifel. Don't forget to also explore the latest Nvidia ratings, estimates, financials, transcripts, filings, charts, and virtual analyst reports (new feature) on Seeking Alpha.

[48]

PYMNTS

Nvidia Earnings Report Could Trigger $300 Billion Market Swing | PYMNTS.com

Market watchers are bracing for potentially historic volatility when Nvidia reports its earnings on Wednesday (Nov. 20), according to Bloomberg News. The chip giant's stock could move about 8% in either direction following the results, potentially shifting its market value by nearly $300 billion -- an amount exceeding the total worth of most S&P 500 companies, Bloomberg said. The news service reported that Bank of America analysts indicate the report carries more market risk than upcoming Federal Reserve decisions or inflation data. The heightened uncertainty centers on Nvidia's new Blackwell chip line. While the company projects billions in fourth-quarter revenue from the product, production delays have complicated supply forecasts. Customers may delay purchases of current-generation Hopper chips while awaiting Blackwell's release. The stakes are exceptionally high, given Nvidia's nearly 200% stock surge in 2024, which made it the world's most valuable company. The chipmaker has exceeded revenue estimates by an average of $1.8 billion over the past five quarters. Bloomberg reported that Nvidia's Big Tech customers, including Microsoft, Alphabet, Amazon and Meta, indicated increased capital spending plans for the year ahead, pointing to continued demand for Nvidia's artificial intelligence (AI) accelerator chips. Nvidia, a global leader in GPU technology, is at the forefront of the AI economy. Founded in 1993, the company revolutionized computing with its GPUs, initially designed for gaming but now integral to AI workloads. Nvidia's CUDA platform and tensor core GPUs, like the A100 and H100, dominate AI model training and inference, making it a cornerstone of data center infrastructure. Its software ecosystems, such as TensorRT and Nvidia AI Enterprise, bolster its offerings in the healthcare, automotive and robotics industries.

[49]

Jensen Huang must answer 3 main questions when Nvidia reports earnings

Bellwether semiconductor company Nvidia is due to present earnings after markets close on Wednesday, with all of Wall Street eager to learn whether the AI bull market still has legs. While founder Jensen Huang will feel the heat if he cannot deliver a bullish quarterly report, the pressure this time is not nearly as intense as in August, when seemingly the fate of the entire stock market hung on his every word after several big name tech companies disappointed. At the time Dan Ives of Wedbush Securities went so far as to call Nvidia's results "the most important tech earnings in years." Yet Huang is still expected to set the tone for the industry moving forward as investors will be eager for clues on the health of the generative artificial intelligence boom. Nvidia has been a chief profiteer of the investment wave, since it supplies roughly 9 out of 10 AI training chips to data centers. Its shares have tripled in value since the start of this year, while the tech-heavy Nasdaq Composite has only risen by a third over that same period. "We expect another jaw dropper tomorrow from the Godfather of AI Jensen that will put jet fuel in this bull market engine," wrote Ives on Tuesday, reaffirming his underlying investment thesis. In his view, Nvidia's bombshell-proof market share effectively means it is the "only game in town" and can expect $1 trillion or more in capex spending from customers. That doesn't mean that the bar isn't rising, especially as Nvidia continues to lap its easier comparison results from previous year's quarters prior to the GenAI boom. There is a growing debate around the question as to whether advancements in neural networks are starting to plateau, with the pace of innovation dropping as the vast amounts of fresh data needed to train large language models are seemingly exhausted. Meta's chief AI scientist Yann Lecun, one of the original luminaries in the field, warned that simply attempting to scale the models through greater volumes of chips that are more powerful and can crunch even more data is not going to be enough -- only a paradigm shift in approach will suffice. "LLMs will *not* reach human-level intelligence," he posted to Threads last week. "New architectures are needed." OpenAI's recent product launch cadence has often been cited as an example. GPT-5 is still nowhere to be seen nearly two full years since its predecessor's launch in early 2023. Meanwhile initial plans to commercially roll out its text-to-video GenAI tool, Sora, before the year is out don't appear realistic, especially now that chief technology officer Mira Murati has left the company. Should Nvidia customers see dimishing returns on their investments and come to similar conclusions, it's likely they will be more cautious with their orders moving forward. Secondly, Nvidia faces a host of questions itself around its latest generation AI training chip, dubbed Blackwell, which is effectively two AI chips sandwiched into one. For example, the decision to make Japan's Softbank the first customer of Blackwell raised flags. A more obvious candidate would have been OpenAI, which received the first Hopper H200 back in April -- hand delivered by Huang himself. This unusual choice may be in part because earlier reports of design problems are hampering the rollout. Tech news publication The Information revealed Blackwell chips have been overheating in server racks that have particularly high energy consumption requirements of around 120 kilowatts. Nvidia confirmed this has required further adjustments in their installation on premise, calling it "normal and expected." That hasn't entirely satisfied analysts, however. "Investors now need to add this to the list of questions," Wells Fargo said in a research note published on Sunday. Importantly, Blackwell is not expected to affect the fiscal third quarter results that Nvidia will report on Wednesday, but it could impact their outlook. That's because Huang has promised that the company should already reap several billion dollars in revenue in the current fourth quarter that ends in late January. Finally another concern this time -- entirely out of Huang's control -- is the accounting issues behind Super Micro Computer, which procures Nvidia AI chips as part of their data center hardware business. Only earlier this year a darling of investors, a recent report by short seller Hindenburg Research has raised fundamental questions about the company's accounting practices. Last month its auditor jumped ship entirely. Super Micro announced on Monday that it had hired BDO USA as its new auditor. Mark Yusko, CEO and investment chief of Morgan Creek Capital with $1.9 billion in assets under management, said he was nervous when it came to Nvidia's current valuation given the problems besetting Super Micro CEO Charles Liang's firm. "If they don't have the capacity to continue to be your third largest customer what happens to your revenue growth and profit growth? We've seen this before with Nortel and Cisco back in 2000 and 2001," Mark Yusko told CNBC last week. "I would be a seller." Nearly half of Nvidia's revenue comes from just four major customers, the company revealed in August, creating a concentration risk for the chip supplier.

[50]

TechSpot

Nvidia's stellar Q3 proves that the age of AI is in full steam

TL;DR: Nvidia has posted record revenue for the third quarter ending October 27, 2024, serving as further proof that the age of AI is in full steam. For the three-month period, Nvidia generated $35.1 billion in revenue. That is an increase of 17 percent compared to the previous quarter and a whopping 94 percent more than it brought in during the same period a year earlier. Non-GAAP earnings per share were $0.81 - up 19 percent sequentially and 103 percent from a year ago. For reference, analysts were expecting $33.2 billion in revenue and EPS of $0.74. The vast majority of Nvidia's earnings came from the data center division, which generated $30.8 billion. That's up 17 percent quarter over quarter and 112 percent compared to Q3 2023. Gaming revenue in the quarter was $3.3 billion - an increase of 14 percent versus last quarter and 15 percent from a year earlier. Speaking of gaming, it was just over a month ago that Nvidia celebrated the 25th anniversary of the original GeForce card, the GeForce 256. That legendary unit dropped on October 11, 1999, and was marketed as the world's first GPU. While not the first aftermarket graphics card I would own, it was the first to be slotted into my first custom-built PC. I still remember being surprised to see the active cooling solution when I unboxed it. My, how time flies. Shares in Nvidia are down 2.44 percent on the earnings report as of this writing to $142.33, but are still up nearly 195 percent year to date and more than 2,600 percent over the last five years. Nvidia's recent success has also made CEO Jensen Huang one of the richest people in the world. Looking ahead, Nvidia forecasts revenue of $37.5 billion (plus or minus two percent) for the fourth quarter with gross margins between 73 percent and 73.5 percent. For comparison, Wall Street is expecting $37 billion in revenue from Nvidia in the final quarter of the year.

[51]

CNBC

Nvidia earnings are on deck. Here's what Wall Street is watching for

Expectations are high for Nvidia's earnings. Nvidia is expected to report fiscal 2025 third-quarter results Wednesday after the close. Analysts see the darling chipmaker reporting a profit of 75 cents per share on revenue of $33.16 billion, per LSEG. Both figures represent more than 80% growth from the year-earlier period. The report will likely have implications for the broader market, given Nvidia's massive size. The semiconductor giant has a market capitalization of more than $3.6 trillion, making it the most valuable U.S.-listed company. But just as key as the results themselves will be is what Nvidia says about the demand behind its latest Blackwell graphics processing unit, or GPU, which is designed to meet the heavy processing needs for AI capabilities and often sold to large tech hyperscalers. NVDA YTD mountain Nvidia performance this year. Momentum behind Nvidia's Blackwell ramp Wall Street majors view Nvidia's Blackwell platform -- which should be generally available in the January quarter -- as a multibillion dollar revenue opportunity for the chipmaker. Nvidia had said in August that it expected about "several billion" in Blackwell sales during the January quarter. According to Piper Sandler analyst Harsh Kumar, Nvidia could deliver between $5 billion and $8 billion of Blackwell revenues in the January quarter. "We are making NVDA our top large-cap pick given the company's dominant positioning in AI accelerators and the upcoming launch of the Blackwell architecture," Kumar said in a Nov. 11 note, putting a $175 price target on the stock. "We think that demand for H100 and 200 will continue to be spread between cloud/enterprise and sovereign, however the initial allocation of Blackwell in the January and April quarters will likely be met with supply to hyperscalers." Goldman Sachs and Citi are similarly bullish on Nvidia's Blackwell sales, but their analysts believe a successful transition to Blackwell chips will be more visible in the first quarter of next year. Goldman maintained its $150 price target, while Citi hiked its target by $20 to $170. Both shops have a buy rating on the stock. "Although we expect FY1Q (April) to be the true 'break out' quarter in which the ramp of Blackwell coupled with improved supply-side conditions drives meaningful positive EPS revisions, we expect FY3Q (Oct) results, FY4Q (Jan) guidance and management commentary on the earnings call to support our constructive thesis on the stock," Goldman analyst Toshiya Hari said in a Nov. 5 note to clients. "We believe the stock is set up well to sustain its outperformance." Analysts are also largely undeterred by recent concerns about a recent report from The Information that Nvidia's Blackwell NVL-72 server racks are experiencing issues with overheating. Bank of America analyst Vivek Arya wrote Sunday that the company is poised for a "solid" 2025 despite concerns about the thermal issues and anticipating a slowdown in AI scaling. He kept his $190 price target on shares, one of the Street's most bullish forecasts -- suggesting more than 35% potential upside from Tuesday's close. "We believe both concerns are noteworthy but unlikely to derail NVDA's CY25 momentum as every cloud customer needs to deploy as much as AI capacity (Hopper and/or Blackwell) to address surging demand," he said. "Concerns re slowdown in AI scaling are also premature in our view as the industry is still in its infancy." Citi analyst Atif Malik similarly modeled a bigger quarterly beat and raise beginning in the April quarter, expecting Nvidia's gross margins to improve on the Blackwell transition. HSBC said Blackwell supply chain concerns have "subsided" and expects upside in the company's fiscal year 2026 data center momentum, which it thinks the market has not yet fully priced in. What about the quarter overall? Many analysts expect strong results from the chipmaker, thanks in part to strong sales of its Hopper GPU. Goldman's Hari sees revenue up 90% year over year at more than $34 billion, with earnings of 79 cents per share also exceeding expectations. "We expect strong demand for Nvidia's Hopper-based GPUs (i.e. H100 and particularly the H200) and Spectrum-X (i.e. Ethernet-based Networking product) to drive strong double-digit (%) Data Center revenue growth," Hari wrote. Wells Fargo's Aaron Rakers sees earnings coming in at 73 cents per share, slightly below the LSEG estimate. That said, he maintained his overweight rating on the stock earlier this month, citing "expanding AI opportunities" around autonomous driving health care and robotics. He also pointed to what he believes could be a multi-billion dollar opportunity for Nvidia: its work with Elon Musk's artificial intelligence startup xAI . Nvidia announced last month that its Spectrum-X Ethernet networking platform made possible the system behind xAI's Colossal supercomputer that is being used to train xAI's Grok family of large language models. Colossal comprises 100,000 Nvidia Hopper GPUs, and xAI is in the process of doubling that, per Nvidia's Oct. 28 release . He also sees data center revenue growth of 99% at $28.9 billion. Stifel analyst Ruben Roy, who has a buy rating on the stock, said Monday he expects earnings per share of 75 cents for the company, matching the consensus. "A broad set of industry commentary, coupled with our checks, suggests a consistent set-up relative to prior quarters," said Roy in a note. "For fiscal 4Q, we are, again, expecting revenue guidance above the current consensus estimate."

[52]

Nvidia again topped Apple to become Wall Street's most valuable company. How it got there -- by the numbers

Nvidia has once again turned out quarterly results that exceeded Wall Street's forecasts. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue nearly doubled in the latest quarter from the same period a year earlier, Nvidia reported Wednesday. The company expects further revenue growth in the current quarter that ends in January. Investors will be watching to see if demand for the company's next-generation AI chip called Blackwell can help it maintain the red-hot pace. The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look. Nvidia's total market value as of the close Wednesday, tops in the S&P 500. It regained the No. 1 sport from Apple ($3.461 trillion) earlier this week. Microsoft is the only other company with a market value above $3 trillion ($3.089 trillion). One year ago, Nvidia's market value was around $1.243 trillion. Gain in Nvidia's stock price so far this year as of the close of trading Wednesday. A $100,000 investment in Nvidia two years ago would now be worth more than $950,000. Shares fell about 1% in after-hours trading following the release of the company's earnings. That's how much of the S&P 500's gain for the year could be attributed to Nvidia alone, as of Oct. 31. Nvidia replaced Intel in the Dow Jones Industrial Average earlier this month. Nvidia's revenue from its data center business for the quarter ended Oct. 31, up 112% from a year ago. Overall revenue rose 94% from a year ago to $35.1 billion. By comparison, revenue growth for all the companies in the S&P 500 is expected to be about 5.5% for the latest quarter, according to FactSet. Nvidia's estimate for overall revenue in the fourth quarter, "plus or minus 2%." That translates to a range of $36.8 billion to $38.3 billion, compared to Wall Street's estimate of $37.1 billion. Revenue in the year-ago fourth quarter totaled $22.1 billion. Analysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025. That would be more than double its revenue for fiscal 2024 and more than four times its receipts the year before that. The number of Thanksgiving meals one could buy with Nvidia's market value of $3.579 trillion, using the $65.51 estimated cost of a 15-item meal from retail intelligence provider Datasembly.

[53]

New York Post

Nvidia shares slide despite chip giant's bullish outlook: 'Age of AI...

Nvidia forecast fourth-quarter revenue slightly above estimates on Wednesday, but still failed to meet lofty expectations of some investors who have made it the world's most valuable firm. Shares of the Santa Clara, California-based company fell roughly 2% in extended trading. They had closed down 0.8% on Wednesday. The company forecast revenue of $37.5 billion, plus or minus 2% for the fourth quarter, compared with analysts' average estimate of $37.09 billion according to data compiled by LSEG. "The age of AI is in full steam, propelling a global shift to NVIDIA computing," Nvidia CEO Jensen Huang said. "Demand for Hopper and anticipation for Blackwell - in full production - are incredible as foundation model makers scale pretraining, post-training and inference," he said, referring to two high-performing AI chips. Expectations ran high ahead of the results, with Nvidia shares up more than 20% over the last two months. The stock has nearly quadrupled so far this year and is up more than nine-fold over the last two years. While demand is soaring for the company's chips that make up the brains of complex generative AI systems, supply-chain snags have made it harder for Nvidia to report the big beats on revenue that have helped make it a Wall Street darling. One of the bottlenecks for its chip supply has been the limited capacity for advanced manufacturing techniques at the company's manufacturing partner TSMC. The company recorded third-quarter adjusted earnings of 81 cents per share, compared to estimates of 75 cents per share.

[54]

Nvidia Delivered 'Jaw Dropping' Q3 Earnings, Says Dan Ives: 'This Is The Fourth Revolution Playing Out In Front Of Our Eyes' - NVIDIA (NASDAQ:NVDA), ServiceNow (NYSE:NOW)

Nvidia Corp. NVDA has once again defied market expectations, delivering a blockbuster third-quarter performance that tech analysts are calling a watershed moment for artificial intelligence. What Happened: Wedbush Securities Managing Director Dan Ives described the results as a "jaw-dropper," emphasizing the transformative potential of the company's AI technology. "This is the fourth revolution playing out in front of our eyes," Ives told CNN, highlighting the broader implications for the tech sector. Referring to Nvidia's CEO Jensen Huang as the "Godfather of AI," he described the company's performance as a transformative moment. Ives boldly predicted a Nasdaq surge to 25,000, driven by the "fourth revolution" in technology. "This is the rally, get ready," he emphasized, highlighting an extraordinary economic multiplier where "one dollar spent on GPU chips translates to an $8 to $10 impact across the tech sector." The analyst believes the market is underestimating demand for AI technologies in the next 12 to 18 months. The analyst addressed potential risks to the AI boom, noting initial market nervousness about high spending and profitability concerns. However, he sees improving confidence, citing companies like Palantir Technologies Inc PLTR, ServiceNow Inc NOW, and Oracle Corp ORCL as positive indicators. Geopolitical concerns, particularly around China and potential tariffs, remain a consideration. Yet, Ives found reassurance in diplomatic channels, specifically mentioning Tesla Inc TSLA CEO Elon Musk's involvement in negotiations, which he believes will help mitigate potential challenges. Nvidia reported third-quarter revenue of $35.1 billion, a 94% increase year-over-year, significantly exceeding Street consensus estimates of $33.12 billion. The company delivered earnings per share of 81 cents, beating analyst expectations of 75 cents. Prior to Nvidia's third-quarter earnings, Ives told CNBC that the company's pathway to a $4 trillion valuation "begins today" with a "drop the mic performance." He emphasized Nvidia's unparalleled market dominance, stating they are "the only game in town" in AI chip development. The company's Blackwell product line, which Ives highlighted as critical, is now in full production. Why It Matters: The analyst's commentary went beyond dry financial analysis, sprinkled with his trademark flair. In a moment that captured both his tech insight and unexpected humor, Ives even ventured into fashion advice for President-elect Donald Trump. The earnings report marks Nvidia's ninth consecutive quarter beating revenue estimates and eighth straight quarter exceeding earnings per share expectations. Price Action: Nvidia's stock closed at $145.89 on Wednesday, down 0.76% for the day. In after-hours trading, the stock dipped further by 2.53%. Year to date, Nvidia's stock has surged 202.86%, according to data from Benzinga Pro. Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

[55]

Miami Herald

Nvidia stock slides as outlook clouds massive Q3 earnings surge

Nvidia posted stronger-than-expected third-quarter earnings Wednesday, powered by ongoing demand for its legacy AI chips and new line of Blackwell processors. However, it issued a muted near-term revenue forecast that sent shares lower in after-hours trading. Nvidia (NVDA) said adjusted profit for the three months ending in October came in at 81 cents a share, more than double the tally from the same period last and firmly ahead of the Wall Street consensus forecast of 75 cents a share. Nvidia reports strong quarterly revenue and profit growth Group revenue soared 94% from a year earlier to $35.08 billion, a figure that also topped analysts' consensus estimate of $31.3 billion. Data center revenue, which includes the group's main AI effort, rose 112% from a year earlier to a record $30.8 billion. Gross profit margins were pegged at 75%, essentially flat to last year's levels. Looking into the current quarter, Nvidia sees revenue in the region of $37.5 billion, with a 2% margin for error, just modestly ahead of the LSEG consensus forecast of $37.1 billion. Nvidia CEO highlights robust AI demand tailwinds "The age of AI is in full steam, propelling a global shift to NVIDIA computing," said CEO Jensen Huang. "Demand for Hopper and anticipation for Blackwell -- in full production -- are incredible as foundation model makers scale pretraining, post-training and inference. Related: Nvidia may see huge stock price swing after earnings "AI is transforming every industry, company and country. Enterprises are adopting agentic AI to revolutionize workflows," Huang added. "Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure." More AI Stocks: Nvidia shares were marked 4% lower in after hours trading immediately following the earnings release to indicate a Thursday opening bell price of $140.00 each. Related: Veteran fund manager sees world of pain coming for stocks

[56]

Nvidia 'Bulls And Bears At An Inflection Point,' Expert Says: Will AI Growth Overcome Global Tariff Risks? - NVIDIA (NASDAQ:NVDA)

Key customers like Microsoft, Amazon, and Meta spotlight Nvidia's critical role in advancing global AI innovations. Although Nvidia Corp NVDA is up over 190% year-to-date, "over the last five months the stock has been relatively flat, leaving bulls and bears at an inflection point," Direxion's Ed Egilinsky says. This pause in growth signals the stock might be priced to perfection. Some active traders are watching for the next move. For those who consider the stock's price is perfection and forward expectations are not lofty enough to propel it higher, the Direxion Daily NVDA Bear 1X Shares ETF NVDD offers a way to get profit from any expected correction in the stock. However, traders who believe the stock will trend higher in the short term, can look to trade the Direxion Daily NVDA Bull 2X Shares ETF NVDU. Read Also: Jim Cramer Doubles Down On Nvidia: 'Demand Is Accelerating' As AI Customers 'Have No Choice' But To Buy Its Chips Potential R&D Spending Not Baked In While Nvidia remains the barometer for the AI space, Egilinsky stresses the importance of continued innovation to retain its competitive edge in AI chips. "This could result in a more sizable commitment to their R&D spending that might not be totally baked into current projections," he said. Geopolitical Tensions, Tariffs Could Impact Future Growth Beyond its product and performance, Nvidia's future is increasingly shaped by geopolitical risks, particularly the U.S. tariff stance. "Traders will be waiting for a sign to trade the next move in Semis and for short-term traders that can be either a bullish view or bearish sentiment," Egilinsky said. The Donald Trump administration's policies on global trade, especially tariffs, could affect Nvidia's revenue from China and its reliance on Taiwan for chip production. AI Growth Still Promising, But Tariffs Add Uncertainty Despite these risks, Nvidia's future looks promising, especially with Blackwell shipments ramping up next quarter. One way to gauge Nvidia's AI growth prospects is by looking at its key customers like Microsoft Corp MSFT, Amazon.com Inc AMZN, and Meta Platforms Inc META. These tech giants rely heavily on Nvidia's chips to power their cloud platforms, machine learning, and data centers. As these companies expand their AI operations, Nvidia's role in driving this growth could bolster its position in the market, fueling continued demand for its products. Egilinsky said the excessive demand for Nvidia's products might "send the stock to new all-time highs." Still, the company's ability to navigate geopolitical hurdles will be crucial to sustaining this growth. Read Next: Nvidia's Post-Earnings Jitters: Can NVDA Stock Regain Its AI-Fueled Momentum? Market News and Data brought to you by Benzinga APIs

[57]

Nvidia stock soars to all-time high of $149.9 amid robust growth By Investing.com

In a remarkable display of market confidence, Nvidia Corporation (NASDAQ:NVDA)'s stock has surged to an all-time high, reaching a price level of $149.9. This milestone underscores the tech giant's significant growth trajectory over the past year, with the stock witnessing an impressive 199.47% increase in value. Investors have rallied behind Nvidia, a leader in the graphics processing unit (GPU) industry, as the company continues to expand its reach in various high-growth sectors, including gaming, data centers, and artificial intelligence. The all-time high represents not just a peak in Nvidia's stock performance but also reflects the broader market's optimism about the company's innovative capabilities and future prospects. In other recent news, NVIDIA has been making significant strides in its financial performance and strategic advancements. The tech giant reported a record-breaking total revenue of $35.1 billion, exceeding expectations. The revenue outlook for the next quarter is estimated at $37.5 billion. Craig-Hallum raised the price target for NVIDIA shares to $175, maintaining a Buy rating. The firm cites NVIDIA's strong position in the supply chain and software ecosystem as key factors in its resilience and growth potential. Analysts from DA Davidson, Itau BBA, William Blair, Rosenblatt Securities, and Cantor Fitzgerald have also updated their stances on NVIDIA. Despite potential short-term pressure on gross margins due to the initial ramp-up of the Blackwell product, margins are expected to rebound in the second half, returning to the mid-70% level. The company's Blackwell chips are expected to significantly contribute to revenue streams, with production shipments expected to ramp up in the fourth quarter. High demand for Blackwell is anticipated to outstrip supply for several quarters due to supply limitations. These recent developments underscore NVIDIA's strong financial performance and strategic position within the rapidly expanding AI industry. Nvidia's recent stock surge to an all-time high is backed by impressive financial metrics and industry positioning, as revealed by InvestingPro data. The company's market capitalization has soared to a staggering $3.57 trillion, reflecting its dominant position in the semiconductor industry. Nvidia's revenue growth is particularly noteworthy, with a 194.69% increase over the last twelve months, demonstrating the company's ability to capitalize on the booming demand for its products across various sectors. InvestingPro Tips highlight Nvidia's financial strength and market position. The company boasts a perfect Piotroski Score of 9, indicating robust financial health. Additionally, Nvidia's gross profit margins are impressive, standing at 75.98% for the last twelve months, which underscores its operational efficiency and pricing power in the market. While the stock's P/E ratio of 67.04 might seem high, it's important to consider that Nvidia is trading at a low P/E ratio relative to its near-term earnings growth potential. This suggests that despite the recent price surge, there might still be room for growth based on the company's earnings trajectory. For investors seeking more comprehensive analysis, InvestingPro offers 22 additional tips on Nvidia, providing a deeper understanding of the company's financial health and market position.

[58]

Investopedia

Nvidia's Data Center Revenue Hits Record High as Results Top Estimates

Nvidia (NVDA) reported third-quarter results that beat analysts' estimates on the top and bottom lines, though shares fell slightly in extended trading Wednesday as investors may have had higher expectations. The artificial intelligence (AI) chipmaker saw third-quarter revenue nearly double year-over-year to a record $35.08 billion, above the analyst consensus from Visible Alpha. Net income at $19.31 billion more than doubled from the year-ago period, also topping projections. Nvidia's revenue gains came as data center revenue, a key figure for Nvidia's AI ambitions, more than doubled to a record $30.8 billion. The company forecast revenue of $37.5 billion for its fiscal fourth quarter, above the analyst consensus of $36.9 billion. "The age of AI is in full steam, propelling a global shift to NVIDIA computing," CEO Jensen Huang said in a release, adding "demand for Hopper and anticipation for Blackwell -- in full production -- are incredible." Shares of Nvidia were 2% lower in extended trading Wednesday following the earnings release. They've nearly tripled in value since the start of the year through Wednesday's close.

[59]

Borneo Bulletin Online

Nvidia crushes earnings expectations on AI chip demand

SAN FRANCISCO (AFP) - US chipmaking behemoth Nvidia said Wednesday it made a USD19 billion profit on record high revenue last quarter as demand continued for its hardware to power artificial intelligence. Nvidia reported quarterly sales of USD35.1 billion, some USD2 billion more than market expectations. "The age of AI is in full steam, propelling a global shift to Nvidia computing," said founder and chief executive Jensen Huang. "AI is transforming every industry, company and country." Huang said that Nvidia's keenly anticipated Blackwell processing platform is in full production and the company is seeing "incredible demand" for the new offering along with current-generation Hopper processors. "Enterprises are adopting agentic AI to revolutionize workflows," Huang said. "Industrial robotics investments are surging with breakthroughs in physical AI, and countries have awakened to the importance of developing their national AI and infrastructure." Nvidia surpassed Apple early this month to become the highest valued company in the world as the artificial intelligence boom continues to excite Wall Street. Following its quarterly report, Nvidia's share price ebbed nearly two per cent in after-hours trading to USD143.24. Investors may have been concerned about the company stating that its margin, the amount of money it makes off processors, is expected to narrow. "Despite Nvidia's technological leadership through CUDA and its first-mover advantage in AI infrastructure, there's little room for execution missteps in 2025," said Emarketer analyst Jacob Bourne. "Particularly given uncertainties around Blackwell's rollout and increasing competition from both AMD and key customers' in-house chip development efforts." The market is also likely weighing geopolitical factors, such as the potential for trade turbulence with China after Donald Trump returns to the White House in January. Nvidia relies on TSMC in Taiwan for its coveted graphics processing units. The world's biggest tech companies have invested tens of billions of dollars into Nvidia's powerful AI chips and software to get their ChatGPT-style AI models up and running. Microsoft, Google, Meta, Tesla and Amazon all depend on Nvidia technology to train generative AI models and execute the heavy computing workloads needed to deploy the new technology. Ahead of the latest earnings, Nvidia's share price had nearly tripled year-to-date and has accounted for a third of the broad-based S&P 500 index's gains this year.

[60]

Nvidia CEO Jensen Huang soothes Wall Street's Blackwell concerns

Nvidia avoided the sell-off many on Wall Street feared, in part because of another blowout earnings beat. Perhaps more importantly, the world's largest company had plenty of good things to say about its next-generation offering of graphic processing units -- the chips at the heart of the AI boom. On the company's Q3 earnings call, CEO Jensen Huang said the rollout of the new platform, known as Blackwell, has avoided major issues and will start boosting the company's top line ahead of schedule. On the call, Huang brushed aside reported engineering snags, saying Nvidia is on track to outdo its prior Q4 estimates for Blackwell sales (he's previously said the platform will initially account for several billion dollars in additional revenue). Huang touted ravenous demand for the new offering, which promises to dramatically boost AI data center performance. "Blackwell production is in full steam," he said. There's broad consensus Blackwell will be a game changer, but the path to market has not been without recent hiccups. Multiple analysts have told Fortune that production snags, which delayed Blackwell's release by at least a quarter, were not a surprise. Early this week, however, The Information reported Nvidia had asked suppliers to adjust the design of the platform's server racks multiple times in recent months due to overheating issues. While Huang did not specifically address the report, he said he believes the Blackwell ramp is in great shape. "He pretty much kind of threw cold water on all those concerns," Angelo Zino, a senior vice president and tech analyst at CFRA Research, told Fortune after the call. Analysts on the earnings call also got assurance from Huang that demand will exceed supply for at least several more quarters. The first question the CEO fielded concerned a growing debate about whether advancements in large language models have stalled. That claim has been floated by the likes of Yann LeCun, Meta's chief AI scientist, who suggested greater volumes of more powerful chips won't be enough to produce further breakthroughs. Huang tried to assuage those concerns. The most recent large AI models, he said, required a maximum of 100,000 Nvidia "Hopper" chips, previously the company's premier offering. "The next generation starts at 100,000 Blackwells," he said. Huang cited numerous customers already up and running with the platform, including the likes of Google, Dell, and Oracle. Chief financial officer Colette Kress said Microsoft has seen performance increase more than two times compared to Hopper. "Blackwell demand is staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us," she said. That said, the company's forecast of $37.5 billion in revenue for Q4, a slight beat on the Street's consensus, was somewhat conservative, Zino said. That caused the stock to dip slightly in after-hours trading before shares recovered those losses Thursday. The muted forecast, he added, could set up an even stronger earnings beat in late February. Unsurprisingly, this view is shared by one Wall Street's most prominent tech bulls. Wedbush Securities' Dan Ives said Huang's bullish commentary should send the stock's bears into hibernation mode.

[61]

euronews

Nvidia's strong earnings fall short of lofty investor expectations

Nvidia shares declined following strong quarterly results as investors set a high bar for earnings. A lower gross margin and slowing growth also contributed to the fall. Nvidia's third-quarter earnings for fiscal 2025 once again showcased robust demand for artificial intelligence (AI) chips. However, capacity constraints and expectations for a lower profit margin failed to impress investors, causing the company's shares to decline by over 2% in after-hours trading. Investors had set a high bar on Nvidia's earnings performance, given its consistent track record of beating forecasts over the past year. Josh Gilbert, a market analyst at eToro, commented: "Given what we've come to expect from Nvidia, this wasn't a blowout quarter, but it doesn't change the long-term story in any way." He added: "Any weakness following the result will be seen as an opportunity for investors to own one of the best tech stocks in the business." Despite this, the AI leader achieved another record quarter. CEO Jensen Huang commented: "The age of AI is in full steam, propelling a global shift to NVIDIA computing." The company's Blackwell production shipments are set to begin in the December quarter as indicated by the CFO's statement. "Demand for Hopper and anticipation for Blackwell - in full production - are incredible as foundation model makers scale pre-training, post-training and inference," Huang added. Nvidia reported earnings per share of $0.78 (€0.74) on revenue of $35.08bn (€33.26bn), or year-on-year growth of 111% and 94%, respectively. While these figures exceeded analysts' expectations, the pace of growth slowed compared to 122% and 168% in the previous quarter, partly due to a higher base. The company achieved another record in data centre revenue, with sales reaching $30.8bn (€29.2bn), up 112% from a year ago, surpassing the estimated $29.53bn. However, this growth was slower than the 154% rise recorded in the second quarter. Gross margin stood at 75%, slightly lower than the 75.7% reported in the previous quarter and 78.4% in the first quarter, highlighting the impact of Nvidia's significant AI investments on profitability. Nonetheless, Nvidia's gross margin remains considerably higher than those of its industry peers, with Microsoft at mid-30% and AMD at 50%. For the fourth quarter, Nvidia provided guidance for revenue of $37.5bn (€35.5bn), plus or minus 2%, alongside a gross margin of 73%-73.5%, plus or minus 50 basis points. However, this guidance failed to impress investors, many of whom had expected a higher figure, with the top range of $41bn (€39bn) from the AI powerhouse. Demand for Nvidia's AI chips continues to outpace supply, urging the company to ramp up investments in its data centre infrastructure. These capacity constraints could further limit growth and exert additional pressure on gross margins in the upcoming quarters. CFO Colette Kress noted: "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." Dilin Wu, a market strategist at Pepperstone Australia said: "The gap between market expectations and Nvidia's outlook, especially on chip supply timing and capacity, appears to have disappointed investors." Another concern is Nvidia's reliance on hyperscaler customers, such as Amazon, Microsoft, and Alphabet, which together account for 50% of its revenue. CEO Jensen Huang highlighted that the AI industry is "large and diverse". He had previously pointed out Nvidia's strategy of diversifying its product offerings across a range of industries, including consumer internet, automotive, and healthcare, rather than focusing exclusively on cloud businesses.

[62]

France 24

Nvidia crushes earnings expectations on AI chip demand

San Francisco (AFP) - US chipmaking behemoth Nvidia said Wednesday it made a $19 billion profit on record high revenue last quarter as demand continued for its hardware to power artificial intelligence. Nvidia reported quarterly sales of $35.1 billion, some $2 billion more than market expectations. "The age of AI is in full steam, propelling a global shift to Nvidia computing," said founder and chief executive Jensen Huang. "AI is transforming every industry, company and country." Huang said that Nvidia's keenly anticipated Blackwell processing platform is in full production and the company is seeing "incredible demand" for the new offering along with current-generation Hopper processors. "Enterprises are adopting agentic AI to revolutionize workflows," Huang said. "Industrial robotics investments are surging with breakthroughs in physical AI, and countries have awakened to the importance of developing their national AI and infrastructure." Nvidia surpassed Apple early this month to become the highest valued company in the world as the artificial intelligence boom continues to excite Wall Street. Following its quarterly report, Nvidia's share price ebbed nearly two percent in after-hours trading to $143.24. Investors may have been concerned about the company stating that its margin, the amount of money it makes off processors, is expected to narrow. "Despite Nvidia's technological leadership through CUDA and its first-mover advantage in AI infrastructure, there's little room for execution missteps in 2025," said Emarketer analyst Jacob Bourne. "Particularly given uncertainties around Blackwell's rollout and increasing competition from both AMD and key customers' in-house chip development efforts." The market is also likely weighing geopolitical factors, such as the potential for trade turbulence with China after Donald Trump returns to the White House in January. Nvidia relies on TSMC in Taiwan for its coveted graphics processing units. The world's biggest tech companies have invested tens of billions of dollars into Nvidia's powerful AI chips and software to get their ChatGPT-style AI models up and running. Microsoft, Google, Meta, Tesla and Amazon all depend on Nvidia technology to train generative AI models and execute the heavy computing workloads needed to deploy the new technology. Ahead of the latest earnings, Nvidia's share price had nearly tripled year-to-date and has accounted for a third of the broad-based S&P 500 index's gains this year.

[63]

Market Screener

Nvidia's AI chip demand still booming despite sales growth worries

STORY: Shares of Nvidia seesawed Thursday, after the AI chip powerhouse reported another strong quarter, but failed to meet some investors' sky-high expectations. Nvidia's revenue outlook is what put some investors off, as it forecast the slowest growth in seven quarters. It also said supply chain constraints would lead demand for its chips to exceed supply for several quarters in fiscal 2026. Analysts have largely attributed the expected slowdown to the (quote) "law of large numbers"... meaning that Nvidia's towering growth creates tough year-over-year comparisons following an initial AI boom after the launch of ChatGPT in 2022. While there are still plenty of companies eager to snap up Nvidia's next-generation AI chip, known as Blackwell, the complex chips can take months to produce. And a design flaw found over the summer hasn't helped matters. CEO Jensen Huang told Reuters that there's a "limit" to how fast Nvidia can ramp up production - which is expected to pressure the company's gross margins. Still, one portfolio manager that holds Nvidia shares said there was no doubt that demand for its chips remained "absolutely and exceptionally strong" and that it appears it'll stay that way for the foreseeable future.

[64]

Nvidia beats third quarter expectations as tech world welcomes Blackwell

Nvidia's (NVDA) fiscal third quarter revenues beat Wall Street's expectations for another straight quarter at a record $35.1 billion -- up 94% from a year ago. The chipmaker's revenues for the quarter ended in October are up 17% from the previous quarter's revenues of $30 billion. Nvidia reported net income of $19.3 billion, and earnings per share, or EPS, of $0.78. "The age of AI is in full steam, propelling a global shift to NVIDIA computing," Nvidia chief executive Jensen Huang said in a statement. "Demand for Hopper and anticipation for Blackwell -- in full production -- are incredible as foundation model makers scale pretraining, post-training and inference." Nvidia was expected to report revenues of $33 billion for the third quarter of fiscal year 2025, according to analysts' estimates compiled by FactSet (FDS). Net income was expected to be $17.4 billion and EPS was expected at $0.75. Shares of the chipmaker were down 0.76% at the market close on Wednesday. Nvidia's shares are up 202.86% so far this year. The company's data center quarterly revenue was $30.8, up 17% from the previous quarter, and up 112% year over year. Nvidia set its fiscal fourth quarter revenue guidance at $37.5 billion, plus or minus 2%. "To support the stock on earnings day," Nvidia would have to report fiscal fourth quarter guidance of at least $38 billion, John Belton, portfolio manager at Gabelli Funds, said in comments shared with Quartz ahead of earnings. Nvidia's shares were down 3.47% during after-hours trading on Wednesday after it released its earnings results. The chipmaker's shares fell 6.9% in after-hours trading after it reported fiscal second quarter earnings in August. Nvidia had set fiscal fourth quarter revenue guidance at $32.5 billion, plus or minus 2% -- slightly above the average analysts were expecting, but below top end estimates.

[65]

SiliconANGLE

Nvidia posts another strong earnings beat as customers race to deploy next-gen Blackwell GPUs - SiliconANGLE

Nvidia posts another strong earnings beat as customers race to deploy next-gen Blackwell GPUs Artificial intelligence chipmaker Nvidia Corp. delivered a better-than-expected earnings and revenue beat as it posted its hotly-anticipated third quarter financial results. It also offered guidance for the coming quarter that was higher than expectations, yet its stock fell 2% in extended trading. The company reported earnings before certain costs such as stock compensation of 81 cents per share, beating Wall Street's projection of 75 cents. Revenue for the period rose 94% year-over-year to $35.08 billion, ahead of the $33.16 billion analyst target. The numbers show Nvidia is continuing to grow rapidly on rampant enterprise demand for its AI processors, though investors will have noted that its revenue growth slowed in comparison to the previous three quarters, when sales rose by 122%, 262% and 265% respectively. Even so, the profits kept pouring into the company. Net income rose to $19.3 billion in the quarter, up from just $9.24 billion in the year-ago quarter. For the current quarter, Nvidia said it's expecting to see revenue of around $37.5 billion at the midpoint of its guidance range, just above the analysts' consensus estimate of $37.08 billion. That forecast implies year-over-year revenue growth of approximately 70% from the previous year, slowing from annual growth of 265% in the year-ago quarter. Nvidia's rampant sales have been driven by incredible demand from cloud infrastructure providers and other enterprises for its iconic graphics processing units, which power the vast majority of AI workloads today. The company has been the single largest beneficiary of the technology industry's race to embrace AI, and it has emerged to become the world's most valuable publicly-traded company. Most of the growth stems from Nvidia's data center business, which covers sales from AI chips and related components and makes up the lion's share of its revenue. The company attributed $30.8 billion of its sales to that segment, up 112% from a year earlier, beating the Street's forecast of $28.82 billion. Not all of those sales were GPUs, though. The company said around $3.1 billion of revenue attributed to the business comes from the sale of networking components such as its InfiniBand products. "The age of AI is in full steam, propelling a global shift to Nvidia computing," said Nvidia founder and Chief Executive Jensen Huang (pictured). Nvidia also reported a gross margin of 73.5%, just above the Street's estimates, which was attributed to the sale of increasing numbers of data center chips. Third Bridge analyst Lucas Keh said Nvidia's data center unit delivered sequential growth of 17% during the quarter, and he expects the company to be able to maintain that rate for some time to come. "Our experts believe this growth rate could continue throughout 2025 as cloud providers increase their appetite for data center GPUs," he said. Elsewhere in Nvidia' business, sales of GPUs for gaming delivered $3.28 billion in revenue, beating the Street's forecast of $3.03 billion. According to the company, this was the result of increased demand for high-powered GPUs in personal computers and laptops, plus rising console-related revenue. The much smaller automotive and professional visualization businesses also posted strong results. Sales in the former rose 72% to $449 million, while in the latter, they increased 17% to $486 million. Analysts were also looking for Nvidia's guidance for its next-generation Blackwell GPUs, which promise to deliver a 30-times performance boost versus the existing H100 chips while reducing energy consumption by up to 25% on some workloads. The company had initially planned to ship the Blackwell chips in the second half of this year, but its plans came unstuck when a design flaw was revealed, causing the launch date to be pushed back to early 2025. Earlier this week, reports emerged that claimed Blackwell might be subject to further delays due to supposed overheating problems when testing clusters of multiple chips linked together in data center server racks, though the company played down such fears. Nvidia Chief Financial Officer Collette Kress shrugged off the report in a conference call with analysts, saying the company intends to ramp up production of Blackwell in the fourth quarter and accelerate production through to fiscal 2026. She added that most end-customers, including the likes of Microsoft Corp., OpenAI and Oracle Corp., have already started receiving samples of the Blackwell GPUs, with 13,000 shipped out so far. "Every customer is racing to be the first to market," Kress said. "Blackwell is now in the hands of all of our major partners, and they are working to bring up their data centers. Keh said it was interesting to note that the concentration of revenue attributed to public cloud providers increased on a sequential basis during the quarter. "This points to positive signs of hyperscale adoption for Blackwell, despite the delays," he explained. According to Kress, Blackwell shipments are expected to ramp up significantly in the next year, and she thinks the company is on track to generate "several billion dollars" of revenue in the fourth quarter. She added that sales of the current-generation H200 chip also increased substantially in the quarter. The company recently announced the launch of a new and improved version of the H200 GPUs, called the H200 NVL, which provides a 1.5-times memory efficiency increase and 1.2-times bandwidth increase over the H100 NVL. "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 added. Keh said there are indications that Nvidia's pricing strategy for Blackwell won't be as aggressive as analysts had previously thought. He said the sequential decline in data center GPU margins was because customers are shifting from older H100 systems to more complex systems such as the H200 and the Blackwell-based B200 chips. "If the transition to these GPUs is negatively impacting Nvidia's margins, this confirms Blackwell pricing will not be as aggressive initially, likely to spur adoption against competitive threats like AMD," he pointed out.

[66]

Nvidia Analysts See Stock 'Best Positioned In AI,' Not Worried About Guidance: 'All Systems Go For Blackwell Ramp' - NVIDIA (NASDAQ:NVDA)

Nvidia's Blackwell remains a key focus for analysts with demand strong and guidance ahead of estimates. NVIDIA Corporation NVDA analysts highlight the company's strong beat in the third quarter and guidance in the fourth quarter that may leave investors less confident in the short term. The NVDA Analysts: Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating on Nvidia with a $175 price target. JPMorgan analyst Harlan Sur reiterated an Overweight rating and raised the price target from $155 to $170. Oppenheimer analyst Rick Schafer reiterated an Outperform rating with a $175 price target. Goldman Sachs analyst Toshiya Hari reiterated a Buy rating and raised the price target from $150 to $165. Piper Sandler analyst Harsh Kumar reiterated an Overweight rating with a $175 price target. Needham analyst Quinn Bolton reiterated a Buy rating and raised the price target from $145 to $160. Benchmark analyst Cody Acree reiterated a Buy rating and raised the price target from $170 to $190. Read Also: Nvidia Slides During Thursday Pre-Market Despite Beating Q3 Estimates: 'Even Outstanding Isn't Enough For Some Investors' Cantor on NVDA: Fourth-quarter guidance coming in lower than estimates and gross margin guidance spooked investors in after-hours trading Muse said in a new investor note. Muse said there was good and great news from Nvidia in the earnings report and conference call. "The Blackwell cycle is tracking better than the original ~$3B guide for the January Q and is expected to accelerate much more meaningfully throughout CY25 and beyond with shortages anticipated over the next several Q's amidst 'staggering demand,'" Muse said. The analyst said they expect first-quarter revenues to "accelerate more meaningfully," which supports the bull case for $5.50 in earnings per share in calendar year 2025 and the potential for $6 per share. Nvidia's update at CES, February's expected guidance and the March GTC conference are items the analyst is watching going forward. Nvidia is called a top pick by the analyst. JPM on NVDA: Third-quarter results were solid and the company's guidance shows strong AI demand, Sur said in a new investor note. "Blackwell production ramp progressing well and demand outstripping supply through majority of CY25," Sur said. The analyst said demand for Blackwell is "very strong" and highlighted management's commentary on expectations for Hopper shipments to remain strong into 2025 as well. "Bottom line, the team continues to maintain a 1-2 step lead ahead of competitors with its silicon/hardware/software platforms, and a strong ecosystem and the team is further distancing itself." Oppenheimer on NVDA: Third-quarter financial results and guidance were roughly inline with buyside expectations, led by Data Center strength, Schafer said in a new investor note. "NVDA remains best positioned in AI, benefitting from full-stack AI hardware/software," Schafer said. The analyst said Nvidia is "the purest scale play" for "AI proliferation." "We see several structural tailwinds driving sustained outsized top-line growth in high-performance gaming, datacenter/AI and autonomous driving vehicles." Goldman Sachs on NVDA: The ramp in Blackwell and yield improvements are likely to drive earnings per share growth, Hari said in a new investor note. The analyst said Nvidia's guidance "only met Street expectations" and comments on gross margin headwinds, but the outlook remains strong for the stock. "We expect growing demand for AI infrastructure across all customer groups," Hari said. The analyst also expects improving supply and gross margin normalization to help drive earnings per share growth. Piper Sandler on NVDA: Nvidia beating third-quarter analyst estimates kept up with recent trends, Kumar said in a new investor note. The analyst said Nvidia is setting up for strong growth starting in April. "The key here is that NVDA is going through a product transition with Blackwell ramping and H200 remaining strong," Kumar said. Nvidia's guidance beats could be higher starting in April, Kumar added. "All systems go for Blackwell ramp." Needham on NVDA: The Blackwell ramp is ahead of previous estimates, Bolton said in a new investor note. The analyst said guidance was below some of the loftier estimates from analysts with third-quarter results well ahead of Needham estimates. "Management not only silenced the Blackwell overheating rumors, but raised its F4Q Blackwell revenue guide," Bolton said. The analyst highlighted Nvidia mentioning Blackwell production was full steam ahead while naming customers such as Dell, Oracle, Microsoft, Alphabet and CoreWeave. "Demand is 'greatly exceeding supply,' and Blackwell sales for the January quarter are currently on track to exceed previous guidance of several billions of dollars." Benchmark on NVDA: Third-quarter results had plenty of strength, but the lack of a huge guidance raise left shareholders wanting more and taking profits, Acree said. "Nothing except the most aggressive beat and raise was likely to keep the market from fairly aggressive profit-taking, which is exactly what happened," Acree said. The analyst said investors may be getting wary about the longevity of "the AI trade" with Nvidia shares up over 200% year-to-date ahead of earnings. "The company's performance and outlook appear to be suffering from a "law of large numbers." Despite Nvidia shares being up over 700% since early 2023 compared to the S&P 500 up 57% over the same time period, the analyst sees long-term value. "NVDA's shares still represent a compelling value for thoughtful investors willing to look past the near-term noise." NVDA Price Action: Nvidia stock is down 1.46% to $143.76 on Thursday versus a 52-week trading range of $45.01 to $152.89. Nvidia stock is up 200% year-to-date in 2024. Read Next: Dan Ives Predicts Nvidia's Blackwell Chips Are Heading For 'Massive Demand Trajectory' As Jensen Huang Says 'LeBron Of Chip Releases' To Surpass Hopper GPU Shipments Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

[67]

Expect another "drop the mic" report from Nvidia, says Wedbush By Investing.com

Investing.com -- Wedbush analysts are bullish on Nvidia (NASDAQ:NVDA) ahead of its upcoming earnings report, expecting what they describe as another "drop the mic performance" from the AI powerhouse. With Nvidia at the center of what Wedbush calls the "AI Revolution," CEO Jensen Huang is positioned to deliver strong results that could propel the tech sector into 2025. Wedbush believes "another $2 billion beat and $2 billion quarter guide higher is the recipe for success that the Street wants to see." Nvidia's GPUs are described as the "new oil and gold" in a world poised to see over $1 trillion in AI capital expenditures over the next few years. The firm emphasizes the significance of enterprise AI demand, which Wedbush believes will "carry the torch" for broader market growth. Wedbush's recent bullish demand checks in Asia are said to further support this optimism. The firm highlights the importance of Nvidia's upcoming commentary on its Blackwell production and demand. Blackwell, Nvidia's next-generation chip, is seen as pivotal in the evolving AI landscape. Wedbush notes that recent cloud earnings from Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Google (NASDAQ:GOOGL) underscore "massive enterprise AI demand," validated by companies like Palantir (NYSE:PLTR) and ServiceNow (NYSE:NOW), as second and third derivatives of the AI boom gain traction. Wedbush likens the current AI buildout to the early days of the internet in the mid-1990s, contrasting it with the tech bubble of 1999. They emphasize Nvidia's central role in a "generational spending cycle" that's just beginning, asserting that for every dollar spent on Nvidia GPUs, there is an $8-$10 multiplier across the tech ecosystem. With the tech sector set to benefit from macroeconomic tailwinds, including potential rate cuts, Wedbush sees Nvidia's report as a catalyst for the "bull market engine," further solidifying its leadership in the "4th Industrial Revolution."

[68]

The Verge

Nvidia says its Blackwell AI chip is 'full steam' ahead

Nvidia has become the world's most valuable company on the back of AI chips, passing Microsoft and Apple along the way, and in today's Q3 2025 earnings, the company suggested its record AI revenue and profits are only the beginning. While The Information recently reported that its new flagship Blackwell AI servers might have cooling issues, the company didn't address that on today's call -- instead, Nvidia assured investors that Blackwell is in "full production," is "full steam" ahead, and that the company would continue to deliver more of the chips each quarter from here on out. Nvidia has already shipped 13,000 Blackwell samples to its customers this quarter, said CFO Colette Kress, and Nvidia CEO Jensen Huang claimed Blackwell's success can already be measured in the billions as a result. "As you can see from all the systems being stood up, Blackwell is in great shape," Huang told investors. While Nvidia has long been known as a graphics and gaming company, pioneering the GPU, its data center fortunes have now outstripped its other businesses by an order of magnitude. Gaming is now merely a $2-3 billion business each quarter for Nvidia, but its AI-infused data centers raked in $30.7 billion this past quarter, making up the vast majority of its $35 billion in quarterly earnings. Much of that is pure profit for Nvidia, too: $14.8 billion in Q1, $16.6 billion in Q2, and now a profit of $19.3 billion in Q3. (Microsoft and Apple made $24.7 billion and $21.4 billion in profit, respectively, this past quarter, though.) Though AI is nowhere near as big a business yet for Nvidia's rival AMD, that company is seeing a similar shift, and is similarly changing its strategy to revolve around AI. Both Nvidia and AMD have accelerated their development timelines, promising to bring out new chips to meet that AI demand each year instead of every two years. Practically, that means there's substantial overlap between each new generation of chips as businesses order them and stick them into data centers. Though Blackwell is Nvidia's latest and greatest, Nvidia says today that the H200 it announced last year is actually now the fastest-selling product it's ever made, growing to multiple billions of dollars' worth this past quarter. Nvidia's H100 was its original winning AI product, though it took longer to see its current success; Huang says the company expects demand for its H-series chips to continue through most of next year.

[69]

CNBC

Nvidia says it will sell more of its next-generation Blackwell chips than previously anticipated

After a quarter where Nvidia's sales nearly doubled, investors and analysts are wondering how long the chipmaker can keep this kind of growth going now that it has a $140 billion annual revenue run rate. Those hopes fall on Blackwell, which is Nvidia's name for a family of server products based around its next-generation AI chip. CEO Jensen Huang and CFO Colette Kress gave investors several new data points on how Blackwell's launch is shaping up on a call with analysts on Wednesday. The duo emphasized that the rollout is on track, and they signaled that Blackwell sales over the next few quarters will be limited by how many chips and systems Nvidia can make, not how much it can sell. "Blackwell production is in full steam," Huang said. "We will deliver this quarter more Blackwells than we had previously estimated." The company's positive comments on Blackwell are one reason why the stock is only down 1%, despite the company missing elevated expectations from bullish investors who anticipated Nvidia would significantly exceed its own forecasts. Huang and Kress's comments also addressed fears about shipment delays that were spurred by reports that said Nvidia was making ongoing engineering changes to its systems to address problems. Some of Nvidia's most important end-customers have already received some Blackwell chips, the company confirmed on Wednesday. Microsoft, Oracle and OpenAI have posted pictures of Blackwell-based server racks on their social media accounts, and on Wednesday, the company said 13,000 Blackwell chips have already been shipped to customers. "There's still a lot of a lot of engineering that happens at this point," Huang said. "But as you see from all of the systems that are being stood up, Blackwell is in great shape." Those sample chips aren't the bulk of the shipments that the company is expecting to make. They're early versions intended to allow customers to start testing and get their systems and software ready for the volume shipments, which will start in Nvidia's current quarter. "We will we'll ship more Blackwells next quarter than this [quarter], and we'll ship more Blackwells the quarter after that than than our first quarter," Huang said. In July, Nvidia said it expected "several billion dollars" of Blackwell revenue in its current quarter, and on Wednesday, the company said it expects the amount of Blackwell sales for this quarter to be higher than its original forecast. Huang also said that Microsoft will soon start to preview its Blackwell-based systems to cloud customers. A limiting factor to producing more Blackwell systems is the amount of components that Nvidia's suppliers can provide, Huang said. Additionally, it takes time to ramp up the velocity of a manufacturing process that has gone from zero shipments to billions of dollars of shipments in a few months. "It is the case that demand exceeds our supply, and that's expected as we're in the beginnings of this generative AI revolution," Huang said. He also named some of Nvidia's "great partners," including TSMC, Amphenol, Vertiv, SK Hynix and Micron. "Almost every company in the world seems to be involved in our supply chain," Huang said. Nvidia said that Blackwell's gross margins will be lower in the coming months than the 73.5% it reported in the third quarter, but the company said that margin will increase as the product matures. Huang pointed out that Blackwell comes as just the chip itself or in configurations that include an entire rack and other components. Nvidia's overall message on Wednesday was that its new Blackwell chip is in short supply because companies like OpenAI need the fastest GPUs available as quickly as possible to develop next-generation AI models. As Blackwell rolls out, Nvidia's current AI chips, which it calls Hopper, will be relegated to serving AI models, not creating new ones. Nvidia said that Blackwell sales will eventually exceed those of Hopper. "You see now that at the tail end of the last generation of foundation models, we're at at about 100,000 Hoppers," Huang said. "The next generation starts at 100,000 Blackwells." WATCH: Nvidia can still grow even with Amazon and Microsoft entering the space: Susquehanna's Chris Rolland

[70]

Decrypt

Nvidia Exceeds Analyst Expectations in Q3, Stock Dips 2% in After Hours Trading - Decrypt

Nvidia Corp (NVDA) reported record-breaking third-quarter revenue and earnings for fiscal 2025, exceeding Wall Street expectations on the back of surging demand for artificial intelligence chips. Despite the strong performance, shares dipped more than 2% in after-hours trading, reflecting investor caution over valuation and tempered guidance. The chipmaker posted revenue of $35.08 billion for the quarter ended October 27, a 94% increase year-on-year and beating analysts' consensus estimate of $33.28 billion. Nvidia's non-GAAP earnings per share came in at $0.81, surpassing consensus estimates $0.75. Revenue from the Data Center segment, Nvidia's key growth driver, reached a record $30.8 billion, up 112% from the same period last year. Jensen Huang, Nvidia's founder and CEO, called the quarter a reflection of "AI in full steam" as enterprises adopt Nvidia's Hopper GPUs and anticipate the launch of its next-generation Blackwell platform. The tech giant has been riding high this year following an explosion of investor interest in AI-related firms and businesses. That has helped drive the Nasdaq to record heights amid wishful prospects of a return to cheaper borrowing should the U.S. Federal Reserve continue to slash its benchmark rate. Despite strong results, Nvidia's stock fell 0.76% during regular trading and dropped another 2.39% in after-hours, closing at $142.40. Analysts attributed the decline to profit-taking after Nvidia's year-long rally, along with cautious reactions to the company's Q4 guidance. Nvidia expects revenue of $37.5 billion for the next quarter, representing a 7% sequential increase and aligning with analyst forecasts. Nvidia's gaming segment also saw steady growth, reporting $3.3 billion in revenue, up 14% sequentially and 15% year-on-year. However, smaller segments like Automotive and Professional Visualization, while growing, contributed modestly to overall revenue. While results underscore Nvidia's dominance in the AI and accelerated computing space, concerns over the company's soaring valuation and supply constraints for its GPUs could weigh on the stock in the short term.

[71]

Meet the Newest Stock-Split Stock in the Dow Jones. It Has Soared 910% Since Early Last Year, and It's Still a Buy Right Now, According to Wall Street | The Motley Fool

This artificial intelligence (AI) pioneer was invited to join the iconic Dow Jones Industrial Average after years of impressive growth. The Dow Jones Industrial Average is the oldest stock market index in the U.S. It is a price-weighted index that tracks the performance of 30 of the largest publicly traded companies in the country. Its member companies span a variety of sectors and industries, and it is considered by many to be a reliable indicator of stock market performance and the health of the overall economy. There are only a few broad criteria for a company's inclusion: Nvidia (NVDA -3.22%) is the most recent addition to the Dow Jones, joining the benchmark on Nov. 8 and replacing chipmaker Intel. That makes it one of only three companies to make the cut so far this year. Over the past decade, Nvidia's revenue has climbed 2,300%, while its net income has surged 8,460%. This, in turn, has fueled stock price gains of 28,940% (as of this writing). As a result of its meteoric rise, the artificial intelligence (AI) chipmaker recently completed a 10-for-1 forward stock split after years of strong business and financial results. The new, lower share price paved the way for Nvidia's inclusion in the Dow. Despite Nvidia's parabolic move higher, many on Wall Street believe the stock still has further to run. Nvidia has long been known for its prowess in developing top-notch graphics processing units (GPUs) that are the first choice among serious gamers. In 1999, the company pioneered the use of parallel computing in its chips, which allows them to run a multitude of mathematical computations simultaneously. By breaking up these massive compute jobs into smaller, more manageable pieces, the company reinvented the gaming industry. In fact, as recently as early 2022, gaming still represented the majority of Nvidia's revenue. But a paradigm shift was coming. It didn't take long before Nvidia realized it could use this technology in a variety of other applications. By 2006, scientists and data researchers discovered that GPUs could be used for other computationally intensive processes, including high-performance computing (HPC), machine learning (a subset of AI), and data centers. This pivot set the stage for the generative AI revolution that kicked off early last year. It's estimated that Nvidia controls as much as 98% of the data center GPU market, according to semiconductor analyst company TechInsights. Since the vast majority of AI processing takes place in data centers, the accelerating adoption of AI directly benefits Nvidia, as its GPUs are the cornerstone of the technology. The company delivered five consecutive quarters of triple-digit, year-over-year growth, so a slowdown was inevitable. However, its most recent results are still enviable. For its fiscal 2025 third quarter (ended Oct. 27), Nvidia generated record revenue of $35 billion, surging 94% year over year and 17% sequentially. This resulted in adjusted earnings per share (EPS) of $0.81, which soared 103%. Management is predicting its growth spurt will continue, albeit at a more moderate pace. The company is guiding for Q4 revenue of $37.5 billion, which would represent growth of 70%. The biggest unknown, at this point, is the ongoing supply constraints, which management predicts will persist well into next year. However, if Nvidia's suppliers can accelerate output, sales could jump. Given the company's pivotal position in the AI revolution, Wall Street is understandably bullish on the company's prospects. Of the 64 analysts who have offered an opinion thus far in November, 94% rate the stock a buy or strong buy, and none recommend selling. Furthermore, an average price target of roughly $170 suggests there's still upside potential of 16% compared to Nvidia's closing price on Wednesday. Rosenblatt analyst Hans Mosesmann continues to be the biggest Nvidia bull on Wall Street. In the wake of the company's impressive results and robust guidance, the analyst maintained a buy rating on the stock while increasing his price target to a Street-high $220, which represents potential gains for investors of 50%. Mosesmann cited Nvidia's "beat and raise" quarter, strong demand for its Hopper chips, and the upcoming ramp of its Blackwell architecture as catalysts to push the stock higher. He isn't the only one that's bullish: A whopping 15 analysts boosted their price targets for Nvidia on the heels of its results. Some investors may be hesitant to buy the stock given its lofty valuation, and on the surface, that argument has weight. After all, Nvidia is currently selling for 69 times earnings and 38 times sales, which certainly appears expensive. However, Wall Street expects Nvidia to generate EPS of $4.36 in fiscal 2026, which begins in late January. That works out to roughly 33 times forward earnings. I'd argue that's an attractive price to pay for an industry leader with unrivaled market share and a solid runway for growth ahead. For my money, Nvidia is a buy.

[72]

Nvidia Beats Q3 Revenue, EPS Estimates, Supply Constraints Ding Stock: Huang Says 'Age Of AI Is In Full Steam' (UPDATED) - NVIDIA (NASDAQ:NVDA)

Editor's note: This story has been updated with additional information. NVIDIA Corporation NVDA continued its streak of beating expectations with third-quarter revenue and earnings per share coming in ahead of Street estimates Wednesday Nvidia's Key Q3 Numbers: Nvidia reported third-quarter revenue of $35.1 billion, up 94% year-over-year, which beat a Street consensus estimate of $33.12 billion, according to data from Benzinga Pro. The company reported earnings per share of 81 cents, which beat Street consensus estimate of 75 cents per share. The company beat analyst estimates for revenue in nine straight quarters. The company beat analyst estimates for earnings per share in eight straight quarters. Analysts and Benzinga readers predicted Nvidia would meet or exceed third-quarter expectations ahead of the report. "What's your boldest prediction for Nvidia's earnings report on Wednesday?" Benzinga asked readers. The results were: Meets expectations: 45% Blowout beat: 42% Misses expectations: 13% The majority of Benzinga readers expected the company to meet or beat the estimates from analysts. While more readers expected the company to meet estimates, 42% believed the company would beat estimates Wednesday. Read Also: Nvidia Stock Historically Drops In December After Q3 Earnings Nvidia's Q3 Performance By Segment: The data center business posted a quarterly record for revenue in the third quarter. Here is a look at the revenue performance by operating business segment. "The age of AI is in full steam, propelling a global shift to NVIDIA computing," Nvidia CEO Jensen Huang said. "Demand for Hopper and anticipation for Blackwell -- in full production -- are incredible as foundation model makers scale pretraining, post-training and inference. Huang said countries have "awakened to the importance" of AI. "AI is transforming every industry, company and country. Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI." Nvidia Q4 Outlook: Nvidia said it expects fourth-quarter revenue to be $37.5 billion plus or minus 2%. The company said Blackwell production shipments are scheduled to begin in the fourth quarter of 2025 and will ramp into fiscal 2026. Nvidia said there is a continued demand for Hopper and the initial ramp of Blackwell. Both are seeing "certain supply constraints," but the company said it was working as hard as it could to ramp up supply. Demand for the Blackwell greatly exceeds supply and the Blackwell guidance remains on track, the company said. Nvidia expects Blackwell margins to be in mid-70s% when ramped. "Demand for our infrastructure is really great," Huang said. "Will deliver more Blackwells this quarter than previously estimated." Demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026, the company said. Earnings Call Highlights: Nvidia executives told investors that Blackwell is "in full production" with customers racing to be the first to market with the company's new product. The company said the pipeline continues to build and enterprise AI and industrial AI are accelerating. Nvidia's gaming segment had a "great quarter" in the third quarter with strong back-to-school sales, the company added. The company said the channel inventory for gaming remains healthy and Nvidia is gearing up for the holiday shopping season. What's Next: With the chance of an earnings beat, Benzinga recently asked readers about their expectations for the stock if Nvidia blows out earnings estimates. "If Nvidia shatters expectations, how high could its stock go by the end of 2024?" Benzinga asked. The results were: $150 to $180: 55% $180 to $200: 26% Above $200: 18% Benzinga readers predicted the stock will hit new all-time highs if third-quarter results come in ahead of analyst estimates. If the stock goes higher, CEO Huang will continue to benefit as one of the key shareholders of the stock. Huang's wealth soared to $128 billion in 2024, ranking 11th in the world according to Bloomberg. Huang added $84.3 billion to his wealth and is around $17 billion away from cracking the top 10 richest people in the world milestone. If shares continue to trade higher to the end of the year, this milestone could be within reach. NVDA Price Action: Nvidia stock is down 2.7% to $141.93 in after-hours trading Wednesday versus a 52-week trading range of $45.01 to $149.76. The stock closed Wednesday down 0.8% to $145.89. Nvidia stock was up over 200% year-to-date ahead of Wednesday's earnings report Read Next: Nvidia Stock Hits All-Time Highs: Here's How Much Nancy Pelosi's 500 Call Options Are Worth Today Nvidia CEO Jensen Huang. Photo courtesy of Nvidia. Market News and Data brought to you by Benzinga APIs

[73]

The Korea Times

Nvidia crushes earnings expectations on AI chip demand

A smartphone with a displayed Nvidia logo is placed on a computer motherboard, Mar. 6, 2023. Reuters-Yonhap U.S. chip making behemoth Nvidia said Wednesday it made a $19 billion profit on record high revenue last quarter as demand continued for its hardware to power artificial intelligence. Nvidia reported quarterly sales of $35.1 billion, some $2 billion more than market expectations. "The age of AI is in full steam, propelling a global shift to Nvidia computing," said founder and chief executive Jensen Huang. "AI is transforming every industry, company and country." Huang said that Nvidia's keenly anticipated Blackwell processing platform is in full production and the company is seeing "incredible demand" for the new offering along with current-generation Hopper processors. "Enterprises are adopting agentic AI to revolutionize workflows," Huang said. "Industrial robotics investments are surging with breakthroughs in physical AI, and countries have awakened to the importance of developing their national AI and infrastructure." Nvidia surpassed Apple early this month to become the highest valued company in the world as the artificial intelligence boom continues to excite Wall Street. Following its quarterly report, Nvidia's share price ebbed nearly two percent in after-hours trading to $143.24. Investors may have been concerned about the company stating that its margin, the amount of money it makes off processors, is expected to narrow. "Despite Nvidia's technological leadership through CUDA and its first-mover advantage in AI infrastructure, there's little room for execution missteps in 2025," said Emarketer analyst Jacob Bourne. "Particularly given uncertainties around Blackwell's rollout and increasing competition from both AMD and key customers' in-house chip development efforts." The market is also likely weighing geopolitical factors, such as the potential for trade turbulence with China after Donald Trump returns to the White House in January. Nvidia relies on TSMC in Taiwan for its coveted graphics processing units. The world's biggest tech companies have invested tens of billions of dollars into Nvidia's powerful AI chips and software to get their ChatGPT-style AI models up and running. Microsoft, Google, Meta, Tesla and Amazon all depend on Nvidia technology to train generative AI models and execute the heavy computing workloads needed to deploy the new technology. Ahead of the latest earnings, Nvidia's share price had nearly tripled year-to-date and has accounted for a third of the broad-based S&P 500 index's gains this year. (AFP)

[74]

Financial Times News

Nvidia revenue almost doubles on the year even as it slows from previous quarter

Nvidia's revenue almost doubled from a year ago in the latest show of strength for the chipmaker that has been one of the biggest beneficiaries of the artificial intelligence boom. Revenue for the quarter to the end of October was $35.1bn, a slower pace of growth from the previous quarter but still well above analysts' expectations for $33.25bn. The company's revenue guidance for the current quarter was $37.5bn, plus or minus 2 per cent, which met consensus expectations of $37bn. The shares were down about 4 per cent in after-hours trading. Analysts have been watching closely to see how Nvidia's new generation of chips, known as Blackwell, launched earlier this year, might affect short-term revenue growth, and whether the chip is encountering any technical issues as it is implemented at scale. According to a recent report from The Information, the Blackwell chips have experienced problems with overheating in servers. The chip already faced production issues earlier this year. Nvidia shares are up more than 200 per cent year to date. The race to develop and adopt AI has fuelled Nvidia's breakneck growth at Nvidia. With a market value of $3.6tn, it is the world's most valuable listed company and has come to have an outsized impact on the stock market. Earlier in the year it was driving about a quarter of the gains on the S&P 500.

[75]

Cooling issues won't halt Blackwell AI chip sales, Nvidia claims

Nvidia anticipates higher sales of its Blackwell AI chips than previously expected, driven by demand from major clients like Microsoft and OpenAI. The company confirmed its production capabilities during a recent earnings call, maintaining an ongoing expansion in AI chip manufacturing. Nvidia's new flagship Blackwell AI servers might be facing cooling issues, but the company sidestepped the topic during today's call. Instead, Nvidia reassured investors that Blackwell is in "full production" and moving "full steam ahead," promising to ramp up chip deliveries each quarter moving forward. During the third quarter earnings call, Huang stated, "Blackwell production is in full steam," noting that they will deliver more Blackwells this quarter than earlier projected. Despite some shipment delays due to engineering adjustments, Nvidia has already shipped 13,000 Blackwell chips, allowing key partners such as Microsoft, Oracle, and OpenAI to begin utilizing the technology. The recent quarter witnessed Nvidia's sales nearly doubling, resulting in an annual revenue run rate of $140 billion. Nvidia's core focus is now on its AI-driven data centers, which generated $30.7 billion in revenue in the past quarter. This shift illustrates a significant pivot from gaming hardware, which now constitutes a smaller revenue segment for the company, only bringing in $2-3 billion per quarter. In July, Nvidia anticipated a revenue of "several billion dollars" from Blackwell in the current quarter, and the recent disclosures indicated that sales might exceed this initial forecast as production ramps up. Huang emphasized that demand is outstripping supply, a trend expected to continue as customers seek high-performance GPUs for generative AI applications. He characterized this surge in demand as part of the "generative AI revolution," underscoring the significance of Blackwell in meeting these needs. While Nvidia is experiencing strong demand, the firm's reported gross margins for Blackwell may be lower initially than the 73.5% reported in the previous quarter. However, Huang predicts that margins will improve as the product matures. The supply chain is a critical factor in production as well; partnerships with companies like TSMC, Amphenol, Vertiv, SK Hynix, and Micron play a vital role in Nvidia's ability to meet customer demands. Huang noted, "Almost every company in the world seems to be involved in our supply chain." Nvidia stock might explode after Nov. 20: Here's why Nvidia's competitive landscape has shifted markedly as it leverages its AI chips to dominate the market. While companies like AMD are starting to see growth in AI, Nvidia remains significantly ahead, having surpassed both Microsoft and Apple in market value due to its AI chip revenue. The company's success with previous AI models, such as the H100, took longer to realize compared to Blackwell, which has already shown potential for billions in revenue shortly after launch. Industry analysts and investors are watching Nvidia's trajectory closely. Although the company missed some elevated expectations from optimistic investors, its position remains robust. Analysts express concern over potential delivery issues but have observed the company's cautious optimism regarding its production capabilities. Huang noted that the development timelines for new chips are accelerating, with Nvidia now aiming to release updates annually rather than biannually.

[76]

CRN

Nvidia Doubles Data Center Revenue Amid Blackwell GPU Anticipation

Jensen Huang, Nvidia's CEO and co-founder, says demand for the AI computing giant's Hopper-based GPUs and anticipation for its recently launched Blackwell GPUs 'are incredible as foundation model makers scale pretraining, post-training and inference.' Nvidia said revenue in its third quarter nearly doubled, growing 94 percent year-over-year to $35.1 billion and beating Wall Street's expectations by a couple billion dollars. The Santa Clara, Calif.-based company also said in its Wednesday earnings release that revenue for the third quarter of its 2025 fiscal year, which wrapped up at the end of October, was 17 percent higher than the previous three-month period. It also reported diluted earnings per share of 81 cents, up 19 percent sequentially and up 103 percent year-over-year. [Related: Nvidia Reveals 4-GPU GB200 NVL4 Superchip, Releases H200 NVL Module] The largest contributor of third-quarter revenue was Nvidia's data center business, which more than doubled, increasing by 112 percent year-over-year to $30.8 billion. This also marked a 17 percent increase from the previous quarter. Nvidia estimates that fourth-quarter revenue will come out to roughly $37.5 billion, which would represent a 6.8 percent sequential increase and a nearly 70 percent year-over-year increase. Jensen Huang, Nvidia's CEO and co-founder, said demand for the AI computing giant's Hopper-based GPUs and anticipation for its recently launched Blackwell GPUs "are incredible as foundation model makers scale pretraining, post-training and inference." "The age of AI is in full steam, propelling a global shift to Nvidia computing," he added. The company beat Wall Street's expectations on revenue by nearly $2 billion while exceeding the average analyst estimate for earnings per share by 6 cents. However, its fourth-quarter revenue estimate was only slightly higher than what Wall Street analysts have been anticipating. Nvidia's stock price was down by almost 2 percent in after-hours trading.

[77]

BNN

Nvidia Traders Brace for Potential $300 Billion Earnings Move

(Bloomberg) -- With Nvidia Corp. due to report an unusually complex quarter as the world's most valuable company, traders are preparing for a potentially mammoth stock swing. The options-implied move for Nvidia shares the day after earnings is about 8% in either direction, according to data compiled by Bloomberg. That would equate to close to a $300 billion swing in market value -- bigger than all but 25 companies in the S&P 500 Index. And according to strategists at Bank of America, the report carries more risk for the benchmark than the next Federal Reserve meeting or inflation data. As the poster child of the artificial intelligence trade, Nvidia has been the biggest event on the earnings calendar for more than a year. But for the chipmaker's fiscal third quarter, due on Wednesday after the market close, there's more uncertainty than normal about how the results and guidance will play out. That's because there are varying views on Wall Street about what to expect from the company's newest product line, Blackwell. Nvidia has said that the new chips will contribute several billion dollars in revenue in the fiscal fourth quarter, while Chief Executive Officer Jensen Huang described demand for the chips as "insane." But production delays have made modeling supply -- a notoriously difficult task -- even harder. "There's a big unknown around Blackwell capacity," said Dan Eye, chief investment officer at Fort Pitt Capital Group. "The CEO has established a lot of credibility, but the bar is very high," he said, adding that it will likely be challenging for Nvidia to give blowout guidance for next quarter. The questions around Blackwell have led to a wide spread in analyst expectations for the fiscal fourth quarter that ends in January. Consensus is at $37.1 billion -- with the gap between the highest and lowest projections at more than $7 billion, according to estimates compiled by Bloomberg. Nvidia typically provides revenue guidance for the upcoming quarter with its results. Part of the reason for the gap in analyst forecasts is that some expect customers to delay purchases of Blackwell's predecessor products, called Hopper, in anticipation of the newer chips. That's what Morgan Stanley analyst Joseph Moore is anticipating and why he's calling Wednesday's results a "transitional" quarter. Nvidia is likely to give a conservative forecast that's only slightly ahead of the average analyst estimate, which should satisfy most investors as long as everything points to a very strong full-year Blackwell ramp, Moore wrote. Jim Worden, chief investment officer of Wealth Consulting Group, is also less concerned about the timing of Blackwell, with all signs pointing to strong demand. "I expect we'll see a very good showing with Blackwell and how much it is shipping," he said. "That trend should continue on into next year." The chipmaker's biggest customers, including Microsoft Corp., Alphabet Inc., Amazon.com Inc. and Meta Platforms Inc., all pledged in their most recent results to pump more into capital spending in the year ahead. However, with a history of beating estimates in a big way, thanks to unbridled demand for its accelerator chips, Nvidia may need to do more than provide assurances that Blackwell's ramp up remains strong. In the past five quarters, Nvidia sales have beaten consensus by an average of about $1.8 billion, according to data compiled by Bloomberg. If Nvidia results fall short of that bar, it could spell trouble for the stock, which is trading close to a record high after nearly tripling this year. "The stock could be volatile, even on a really good report," Worden said. The market may be expecting perfection, "and to the extent it isn't perfect, the stock could pull back." Rick Bensignor, chief executive officer of Bensignor Investment Strategies and a former Morgan Stanley strategist, agrees. "It can't just beat the consensus, but also the whisper-type numbers that people are looking for," he said. "If it disappoints, we can easily see it come off 10% or so." For the broader market, the implications of Nvidia's results might not have been fully priced in, said Charlie McElligott, Nomura's cross asset strategist at Nomura. Option straddles on the Invesco Nasdaq 100 ETF are only implying a 1.7% move for Thursday. "That maybe 'feels' light," McElligott wrote. --With assistance from Matt Turner, Subrat Patnaik and Jan-Patrick Barnert.

[78]

Sky News

Nvidia shares take fresh hit as growth expectations disappoint

Nvidia, the chipmaker driving the boom in artificial intelligence (AI), has seen fresh falls in its share price following an earnings report amid continued supply chain constraints. Its third quarter trading update showed demand for its top generative AI chips would continue to outstrip supply for at least a year. Some would argue it is a nice problem to have but those curbs on revenue have been widely blamed for Nvidia failing to smash market expectations for revenues this year, holding back its performance. Nvidia said revenues came in at just above $35bn over the three months - above the $33bn consensus, according to LSEG data. Money latest: Act now! Mortgage warning follows inflation surge The company, which has topped the rankings for the most valuable listed firm several times since late spring, has enjoyed an unprecedented increase in its share price, which began in earnest during 2023. But despite shares, up by 190% in the year to date and nine-fold over two years, performing well they have endured more of a rocky ride over the second half of 2024. That is because investors have fretted over the prospects for AI, competition to Nvidia and delays to its next generation Blackwell chips. Nvidia values took a surprise fall despite bumper earnings figures for the first six months of its financial year and plunged further when widespread US market jitters set in at the beginning of September over the prospects for the US economy. Fears that tech stocks were overvalued also contributed. Nvidia boss Jensen Huang said on Wednesday of sales: "The age of AI is in full steam, propelling a global shift to NVIDIA computing. "Demand for Hopper and anticipation for Blackwell - in full production - are incredible as foundation model makers scale pretraining, post-training and inference", he said of the chips. Market analysts noted, ahead of the earnings update, that a positive share price reaction would depend on the revenue guidance not only being smashed but the outlook being broadened. They also sought reassurance that Blackwell's rollout was seen to be on track to help justify the more recent share price recovery, one that tech has seen more generally since Donald Trump's US presidential election victory was declared. Read more from Sky News: Rate of inflation rises by more than expected Ford plans to cut 4,000 jobs - including hundreds in UK Guardian owner to discuss Observer sale before strike action One of the bottlenecks for Nvidia's chip supply has been the limited capacity for advanced production techniques at its manufacturing partner TSMC. The revenue guidance for the fourth quarter was put at $37.5bn compared to a $37bn figure anticipated by market forecasts. Shares were down by more than 2% in after hours dealing, following a decline during regular Wall St hours.

[79]

Analytics India Magazine

AI Boom Pushes NVIDIA Q3 Revenue to $35.1B as Blackwell Demand Soars

NVIDIA reported record revenue of $35.1 billion for the third quarter of fiscal 2025, a 17% rise from the previous quarter and a 94% increase year-over-year. The data centre segment contributed $30.8 billion, up 17% from the prior quarter and 112% from the same period last year. "The age of AI is in full steam, propelling a global shift to NVIDIA computing," said Jensen Huang, founder and CEO of NVIDIA. "Demand for Hopper and anticipation for Blackwell -- in full production -- are incredible as foundation model makers scale pretraining, post-training, and inference." Huang also highlighted the broader impact of AI, saying, "AI is transforming every industry, company, and country. Enterprises are adopting agentic AI to revolutionise workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure." Looking ahead, NVIDIA provided an optimistic forecast for the fourth quarter, projecting revenue of $37.5 billion, which surpasses analyst expectations. Despite the impressive results, NVIDIA's stock experienced a slight dip in after-hours trading, possibly due to investors' even higher expectations. During the earnings call, Huang said that Blackwell production is running at full steam. NVIDIA's CFO Colette M Kress revealed that the company shipped 13,000 Blackwell GPU samples to customers in the third quarter, including one of the first Blackwell DGX engineering samples to OpenAI. "Blackwell is now in the hands of all of our major partners, and they are working to bring up their data centers. We are integrating Blackwell systems into the diverse data centre configurations of our customers," said Kress. "Blackwell demand is staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us." She further reported exceptional demand for Hopper GPUs, with H200 sales rising significantly quarter-over-quarter to reach double-digit billions. The CFO described the H200's production ramp as the fastest in NVIDIA's history, noting its delivery of up to twice the inference performance and a 50% improvement in total cost of ownership (TCO).

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TweakTown

NVIDIA's Q3 revenue is up 94% from a year ago, which includes growth for Gaming

TL;DR: NVIDIA reported Q3 2024 revenue of $35.1 billion, a 17% increase from the previous quarter and 94% year-over-year growth, driven by AI and Data Center segments. NVIDIA has posted its financial results for the third quarter that ended on October 27, 2024. With $35.1 billion in revenue, the company once again exceeded expectations. This figure is 17% higher than the previous quarter and 94% higher than the same period of last year, driven once again by AI and the company's Data Center segment. And with a gross margin of 74.6%, NVIDIA shows no signs of slowing down. "AI is transforming every industry, company, and country," said Jensen Huang, founder and CEO of NVIDIA. "Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure." That's a lot of "AI" in one statement. Jensen Huang also said that the entire planet is shifting toward "NVIDIA computing," which is an incredibly bold thing to say, while confirming that its highly anticipated Blackwell chips are in full production for Data Center, Gaming, and AI PCs. NVIDIA's Gaming and AI PC business, which includes consumer desktop PCs and laptops with GeForce RTX GPUs, had revenue of $3.3 billion for the quarter, up 14% from the previous quarter and 15% from a year ago. NVIDIA credits this performance to the long-running reputation of the GeForce brand, 25 years and counting, and technologies like DLSS being a staple part of major game releases. It also attributes the growth to new RTX AI PCs from companies like ASUS and MSI, offering consumers an unmatched 321 AI TOPS performance. Of course, $3.3 billion is nowhere near the $30.8 billion of revenue from NVIDIA's Data Center business - up 112% from a year ago. NVIDIA's hardware is now integral to AWS, CoreWeave, and Microsoft Azure cloud services, and Google Cloud and Oracle Cloud infrastructure are on the way. Returning to Jensen's comment about countries developing their own national AI infrastructure, NVIDIA notes that India, Japan, and Indonesia are doing precisely that with NVIDIA computing. Looking toward the immediate future, NVIDIA's outlook for the fourth quarter is expected to hit $37.5 billion - plus or minus 2%.

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The Japan Times

Nvidia's AI chip demand still booming but slowing sales worry investors

Nvidia forecast its slowest revenue growth in seven quarters on Wednesday, failing to meet lofty expectations of some investors who have made it the world's most valuable firm. Shares of the Santa Clara, California-based company fell 5% after it posted results but quickly pared losses to trade down 1.5% after hours. During the regular session, they closed 0.8% lower. Expectations ran high ahead of the results, with Nvidia shares up more than 20% over the last two months and hitting an intraday record high on Monday. The stock has nearly quadrupled so far this year and is up more than ninefold over the last two years. Nvidia is in the middle of launching its powerful Blackwell family of artificial intelligence chips, which will weigh on the company's gross margins initially but improve over time.

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Nvidia 'Modestly At Risk' Amid AI Chip Concerns, Analyst Notes: Momentum Money Swirling Around 'Sells First, Asks Questions Later' - Applied Mat (NASDAQ:AMAT), Alphabet (NASDAQ:GOOGL)

Nvidia Corp. NVDA faces heightened scrutiny ahead of its earnings as technical challenges with its latest artificial intelligence chips and broader market pressures raise concerns, according to Mizuho analyst Jordan Klein. What Happened: Klein, a longtime Nvidia bull, warned investors that the semiconductor giant's shares are "modestly at risk" following reports of overheating issues in its new Blackwell systems, reported Investing.com. The timing is particularly sensitive given Nvidia's recent ascent to become the world's most valuable company, with a market capitalization of $3.482 trillion. "There is just so much quant, passive, and fast momentum money swirling around in markets these days and I assume that style sells first, asks questions later," Klein noted in his investor communication, highlighting the volatile nature of current market dynamics. See Also: Amazon And SpaceX's Efforts To Block NLRB Cases In Jeopardy As Appeals Court Raises Key Legal Concerns Why It Matters: The Blackwell chips, unveiled in March and promising 30 times faster performance than previous generations, have reportedly encountered thermal issues when installed in high-density server racks. Major customers potentially affected include Meta Platforms Inc. META, Microsoft Corp. MSFT, and Alphabet Inc. GOOGL GOOGL subsidiary Google. Nvidia has responded to the situation, with a spokesperson telling Reuters that "engineering iterations are normal and expected" while working with cloud service providers. Despite these immediate challenges, Klein maintains his long-term optimistic outlook for Nvidia but cautions about near-term volatility, particularly from retail and momentum-driven investors who "purely react to headlines and initial stock moves." However, CNBC's Jim Cramer offered a contrasting view, suggesting the market's reaction might be overdone. "Be skeptical about the negatives with Nvidia," Cramer posted on X. He later expanded on CNBC, saying, "I'm more inclined to think you're getting a buying opportunity in Nvidia thanks to The Information publishing a story that may simply not be that." Read Next: Boeing To Lay Off Over 2,500 Workers In The US Amid Global Workforce Reduction Image Via Unsplash Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

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Wired

Nvidia Says Its Blackwell Chip Is Fine, Nothing to See Here

Chip production delays and a rumored overheating issue haven't slowed down Nvidia, which reported another quarter of blockbuster earnings and said Blackwells are now in the hands of Microsoft and OpenAI. Chip giant Nvidia reported its third-quarter earnings earlier today, and all ears -- and presumably some watch parties -- were tuned in to try to determine what the company's performance might mean for the near future of the artificial intelligence industry as a whole. The fate of the company's newest AI chip, Blackwell, was a major focus after production issues caused shipments to be delayed for several months earlier this year. On Sunday, The Information also reported that Blackwell chips were overheating when connected together in Nvidia's customized server racks, prompting the company to make design changes. But Nvidia cofounder and CEO Jensen Huang told analysts and investors on its earnings call today that now Blackwell production "is in full steam." "We will deliver this quarter more Blackwells than we had previously estimated," Huang said. Some of Nvidia's most important customers, like Microsoft and OpenAI, have already received the new chips, and Blackwell sales could end up generating several billion in revenue for the company next quarter overall, executives said. Some industry analysts reported earlier that problems with the new chips had already been fixed. Dylan Patel, chief analyst at the research firm SemiAnalysis, told Business insider that the Blackwell overheating issues "have been present for months and have largely been addressed." Patrick Moorhead, founder and chief analyst of Moor Insights & Strategy, told WIRED that his manufacturing contacts were unaware of any major overheating issues. But it's not unusual, he says, for there to be tension between design, engineering, and production when bringing a new chip design to market. "It's a debate as old as semiconductors: Is it a design issue, is it a production issue?" Moorehead said. "People are going to look for any type of smoke that can get in the way of the thesis of [Nvidia's] dramatic growth." Overall, Nvidia generated $35.1 billion in revenue for the quarter, beating estimates of $33.2 billion. Its revenue rose 94 percent compared to last year. That's a "small" rise compared to a few recent quarters, when its revenue rose as much as 265 percent on an annual basis -- but Nvidia isn't going out of business anytime soon. The results indicate the AI market is continuing to boom as companies pour billions of dollars into buying advanced chips and other equipment, albeit at a slightly slower pace.

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Nvidia stock could drop and you're hearing it here first

Nvidia's stock dropped on reports of overheating issues with its new Blackwell AI chips, impacting the company ahead of its earnings report. Problems surfaced after its chips, used in servers designed for high-performance computing, overheat in configurations intended for 72 units. Nvidia is facing pressure as it aims to ramp up production. Industry reports, notably from The Information, indicate that Nvidia's Blackwell graphics processing units are encountering difficulties when deployed in server racks, leading to concerns among clients. A Reuters piece elaborated on how the overheating occurs when the GPUs are housed together, raising alarms about the ability to integrate them efficiently into existing data center models. Despite these challenges, Nvidia's spokesperson stated that "engineering iterations are normal and expected" during the development of such sophisticated systems. They emphasized that the GB200 systems represent "the most advanced computers ever created" and highlighted their commitment to co-engineering with cloud service providers. Nvidia's Chief Executive Officer Jensen Huang previously characterized the Blackwell chip as a "complete game changer for the industry." The company has projected that the new chips could yield billions in revenue during the January quarter, as production is expected to ramp up significantly. However, market reactions were timid, with Nvidia's shares initially falling by approximately 1.8% on Monday before settling down 1.3% at around $140.15. Investors remain on edge as Nvidia prepares to release its highly anticipated earnings report. The Blackwell GPUs have previously been linked to design issues. In August, reports suggested that design flaws had already impacted production timelines, pushing back availability from September to the December quarter. These production delays alongside current overheating concerns have fueled uncertainties about customer readiness to deploy the new chips in their data centers. Another point of view: Nvidia stock might explode after Nov. 20: Here's why Nvidia stated that they are collaborating closely with customers to mitigate these issues, reinforcing that the challenges posed by new technologies are part of the development process. Dell Technologies has mentioned that they are already shipping a portion of Nvidia's Blackwell servers as part of their AI hardware solutions, showcasing ongoing strong demand despite the reported issues. Another element affecting Nvidia's stock stems from wider industry trends. Investor sentiment is growing wary of diminishing AI spending from big tech companies, which could lead to decreased demand for AI chips. Recent earnings reports from chip manufacturers, particularly Applied Materials, sparked broader concerns across technology stocks, evidenced by a notable decline in chip equities following those announcements. Nvidia approaches its earnings report slated for release after the market closes on Wednesday and the market watches closely to see how these technical issues will shape financial forecasts.

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TweakTown

NVIDIA confirms Blackwell GPUs are in 'full production' despite cooling challenges

NVIDIA spoke to investors during a recent call, which revealed that despite potential cooling issues with Blackwell GPUs, NVIDIA will continue to push "full steam" ahead. NVIDIA just wrapped up its Q3 2025 earnings call. The company touted the power of its coming Blackwell AI chips and how the massive popularity of its AI-centered chips will only fuel the company's revenue and profits further. Notably, NVIDIA moved to the top of the list of the world's most valuable publicly traded companies, passing the likes of Microsoft, Apple, and Amazon. NVIDIA was able to achieve this through its AI data center business, which accounted for a staggering $30.7 billion of its quarterly earnings. By comparison, NVIDIA's gaming sector 'only' pulled in around $2-3 billion. Additionally, much of that quarterly revenue is profit for NVIDIA, with the company posting profit figures for the following quarters: Q1, $14.8 billion, $16.6 billion in Q2, and $19.3 billion in Q3. By comparison, Apple and Microsoft made $21.4 billion, and $24.7 billion profit this past quarter, respectively.

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CRN

Nvidia: 'We Are Racing To Scale Supply To Meet Incredible' Blackwell Demand

'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,' Nvidia finance chief Colette Kress said in her third-quarter commentary before CEO Jensen Huang addressed issues with Blackwell. Nvidia CFO Colette Kress said the company is "racing to scale supply to meet incredible demand" for its recently launched Blackwell GPUs and associated systems that have been touted to deliver major leaps in generative AI performance and efficiency. Kress made the comments during the AI computing giant's Wednesday earnings call, where the company reported that its third-quarter revenue nearly doubled to $35.1 billion mainly thanks to continuing high demand for its data center chips and systems. [Related: Nvidia Reveals 4-GPU GB200 NVL4 Superchip, Releases H200 NVL Module] In a prepared commentary on the latest earnings, Kress said Nvidia is scheduled to begin shipping Blackwell products, now in full production, by January, with plans to ramp up those shipments in its 2026 fiscal year, which corresponds with the following months. "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," she wrote. On the call, Kress added that Nvidia is "on track to exceed" its previous Blackwell revenue estimate of several billion dollars for the fourth quarter, which wraps up at the end of January, as its "visibility into supply continues to increase." "Blackwell is a customizable AI infrastructure with seven different types of Nvidia built chips, multiple networking options and for air- and liquid-cooled data centers," she said. "Our current focus is on ramping to strong demand, increasing system availability and providing the optimal mix of configurations to our customers." During the call's question-and-answer session, a financial analyst asked Nvidia CEO Jensen Huang to address a Sunday report by industry publication The Information, which detailed concerns from a few customers about Blackwell GPUs overheating in the most powerful configurations of its Grace Blackwell GB200 NVL72 rack-scale server platform. The GB200 NVL72 is expected to serve as the foundation for upcoming flagship Nvidia AI offerings from major OEM and cloud computing partners, including Dell Technologies, Amazon Web Services, Microsoft Azure, Google Cloud and Oracle Cloud. In response to the question about The Information's report on Blackwell GPUs overheating in GB200 NVL72 systems, Huang noted that while Blackwell production is in "full steam" with the company exceeding previous revenue estimates, he said the engineering Nvidia does with OEM and cloud computing partners is "rather complicated." "The reason for that is because although we build full stack and full infrastructure, we disaggregate all of the AI supercomputer and we integrate it into all of the custom data centers and architectures around the world," he said on the earnings call. "That integration process is something we've done several generations now. We've very good at it, but there's still a lot of engineering that happens at this point," Huang added. Huang pointed out that Dell Technologies announced on Sunday that it had started shipping its GB200 NVL72 server racks to customers, including up-and-coming GPU cloud service provider CoreWeave. He also mentioned Blackwell systems that are being stood up by Oracle Cloud Infrastructure, Microsoft Azure and Google Cloud. "But as you see from all of the systems that are being stood up, Blackwell is in great shape," he said. "And as we mentioned earlier, the supply and what we're planning to shift this quarter is greater than our previous estimates." Addressing a question about Nvidia's ability to execute on its data center road map, which moved to an annual release cadence for GPUs and other chips last year, Huang remained steadfast in his commitment to the accelerated production plan. "We're on an annual roadmap, and we're expecting to continue to execute on that annual roadmap. And by doing so, we increase the performance of our platform. But it's also really important to realize that when we're able to increase performance and do so at X factors at a time, we're reducing the cost of training, we're reducing the cost of inference, and we're reducing the cost of AI so that it could be much more accessible," he said. After Nvidia released its third-quarter earnings release, investors reacted by sending the company's stock price down by more than 1 percent in after-hours trading. While the company beat Wall Street's expectations on revenue by nearly $2 billion and exceeded the average analyst estimate for earnings per share by 6 cents, its fourth-quarter revenue estimate was only slightly higher than what Wall Street had been anticipating. Andy Lin, CTO at top Nvidia partner Mark III Systems in Houston, Texas, told CRN that while demand for Nvidia's data center GPUs and associated systems are "obviously incredibly strong," it has "set such a high bar" for itself with several quarters of triple-digit growth. "These numbers are still astounding, especially on the year-over-year compare. But it's obviously less growth than before," he said. However, Lin said, some customers may be holding off from making any purchases right now as Nvidia transitions from Hopper-based systems to Blackwell-based systems. "There are definitely many organizations we see that have definitely not spent [money on new infrastructure and are waiting] on Blackwell. So the question is, how many of those there are, to what scale and what that's going to look like? And I think that could be one thing that maybe the market is underestimating a little bit," he said.

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Nvidia is having problems with its hot new AI chip as earning loom

What is 'The Big Lebotski' and how did it help Shake Shack shatter sales goals? The Information, citing unnamed sources familiar with the matter, reports that Nvidia has repeatedly asked its suppliers to change the design of its custom-designed server racks in recent months because its Blackwell AI chips are overheating when connected. Nvidia's customers are reportedly worried about a delay for the server racks, which combine 72 of the AI chips in hope that larger AI models can be trained faster with more chips. The redesigns are being made later than usual in the production process, The Information reports, but Nvidia could still ship the server racks on schedule, which it set at the end of the first half of next year. On Sunday, Dell (DELL+2.93%) chief executive Michael Dell posted on X that Nvidia's GB200 NVL72 server racks are shipping, and that Dell had delivered server racks to CoreWeave. "NVIDIA GB200 systems are the most advanced computers ever created. Integrating them into a diverse range of data center environments requires co-engineering with our customers," an Nvidia spokesperson said in a statement. "While our customers race to be first to market, NVIDIA is working with leading CSPs as an integral part of our engineering team and process. The engineering iterations are normal and expected." Nvidia's production and shipping delays for Blackwell were also caused by a design flaw, Nvidia chief executive Jensen Huang said in October, after media reports surfaced in August. The Blackwell computer involved seven new chip designs that needed to be developed and put into production simultaneously, Huang said. The chipmaker had to work with its partner, Taiwan Semiconductor Manufacturing Company (TSM-0.79%), to resolve the engineering setback. "It was functional, but the design flaw caused the yield to be low," Huang said. "It was 100% Nvidia's fault." Nvidia is set to report earnings for the fiscal third quarter on Wednesday. The AI chipmaker is expected to report revenues of $33 billion for the third quarter of fiscal year 2025, according to analysts' estimates compiled by FactSet (FDS+0.57%). Net income is expected to be $17.4 billion and earnings per share is expected to be $0.75. Nvidia stock was down by about 2.5% during Monday morning trading, but the shares are up about 187% so far this year.

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Inc. Magazine

Nvidia's Blackwell AI Chips in Focus as Sales Growth Slows

Growth for the fourth quarter ending January -- which will include sales of Nvidia's new Blackwell chips -- is likely to slow further to 67.6 percent. After design flaws brought on delays in ramping up production of the new series of processors, investors are keen to know whether Nvidia will be able to deliver on the promised "several billion dollars in Blackwell revenue" in the January quarter. Meanwhile, after the report of overheating issues, released Sunday by The Information, some customers worry they will not have enough time to get new data centers up and running. The Blackwell graphics processing units overheat when connected together in server racks designed to hold up to 72 chips, the report said, citing sources familiar with the issue. The chipmaker has asked its suppliers to change the design of the racks several times to resolve overheating problems, according to Nvidia employees who have been working on the issue, as well as customers and suppliers with knowledge of the issue, the report said without naming the suppliers.

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Nvidia's Blackwell Chips Are Extra Toasty, Server Overheating Issues Impact Meta, Microsoft And Elon Musk's xAI - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Nvidia Corporation's NVDA new Blackwell AI chips are reportedly grappling with overheating issues. What Happened: Nvidia's Blackwell AI chips are experiencing overheating problems when connected to server racks designed to hold up to 72 chips, reported The Information, citing Nvidia employees working on the problem and customers and suppliers familiar with the situation. The chipmaker has reportedly requested its suppliers to modify the rack design multiple times to address the overheating issue. See Also: IBM, Disney And Other Large Advertisers Return To Elon Musk's X After A Year-Long Boycott: 'We Super Appreciate' A Nvidia spokesperson told Reuters, "Nvidia is working with leading cloud service providers as an integral part of our engineering team and process. The engineering iterations are normal and expected." Nvidia did not immediately respond to Benzinga's request for comments. The Blackwell chips, unveiled by Nvidia in March, were initially slated to ship in the second quarter. However, they faced delays, potentially affecting customers such as Meta Platforms Inc. META, Microsoft Corporation MSFT, Alphabet Inc.'s GOOG GOOGL Google and Elon Musk's xAI. Why It Matters: The Blackwell chip combines two silicon squares into a single component. It is touted to be 30 times faster at tasks like responding to chatbot queries than the company's previous offering. The demand for the Blackwell GPU platform was described as "insane" by Nvidia CEO Jensen Huang last month. Nvidia's Blackwell chip revenue was projected to hit $6 billion in the next quarter, according to a Morgan Stanley analyst. This projection was made despite Nvidia being fully supply-constrained on new products. Earlier this month, Nvidia surpassed Apple to become the world's most valuable company, largely due to its dominance in the artificial intelligence chip market. The AI giant's current market capitalization stands at $3.482 trillion. Price Action: Nvidia shares closed Friday's trading session with a 3.26% decline, settling at $141.98. In after-hours trading, the stock saw a slight uptick, reaching $142.70 at the time of writing, according to data from Benzinga Pro. Read Next: T-Mobile Hit By Chinese Hackers After Rivals AT&T, Verizon Suffer Breach: Report Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

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Nvidia's Blackwell GPUs are so hot, they could bake a cake

Nvidia's Blackwell GPUs face overheating challenges impacting major tech clients. The next-generation processors are struggling to perform effectively in server racks housing 72 GPUs, raising concerns for companies like Google, Meta, and Microsoft about timely deployment. Reports indicate that Nvidia is reevaluating its rack designs multiple times due to these overheating issues, which risk damaging components and limit GPU performance. The anticipated power draw for these configurations is up to 120kW per rack. Insiders informed The Information that Nvidia's Blackwell GPUs for AI and high-performance computing (HPC) have overheated in high-capacity servers, affecting launch timelines for clients relying on these technologies. In a bid to address the complications stemming from these overheating problems, Nvidia has requested its suppliers to modify the rack designs repeatedly. A spokesperson from Nvidia emphasized their collaborative approach with cloud services, describing the design changes as a routine part of the development process. Previously, delays in the Blackwell production ramp were attributed to a "yield-killing" design flaw. The Blackwell B100 and B200 GPUs utilize TSMC's CoWoS-L packaging technology, which integrates two chiplets for enhanced data transfer speeds of up to 10 TB/s. However, a mismatch in thermal expansion characteristics among the GPU chiplets and other components led to warping and system failures. To resolve this, Nvidia made modifications to the GPU silicon's metal layers and bump structures. The result of these improvements only entered mass production in late October, with expected shipping dates pushed back to late January. This delay is critical for Nvidia's clients like Google, Meta, and Microsoft, which depend on these GPUs to enhance their most powerful AI models. Nvidia previously touted the Blackwell chips as being 30 times faster for tasks such as responding to chatbot queries compared to earlier models. Nvidia's Blackwell chip revenue was projected to reach $6 billion in the next quarter, highlighting the high demand despite the ongoing supply constraints. Nvidia, recently surpassing Apple, is now the world's most valuable company with a market capitalization soaring to $3.482 trillion. However, the continuous setbacks regarding the Blackwell processors threaten to disrupt the planned advancements in AI capabilities essential for major tech players.

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