Nvidia Corp., the world’s most valuable company, reported a 94% surge in third-quarter revenue, reaching $35.08 billion, surpassing analyst expectations of $33.16 billion and its prior guidance of $32.5 billion. However, its fourth-quarter revenue forecast of $37.5 billion, while above the average estimate of $37.1 billion, fell short of the highest projections, which reached as high as $41 billion. This signals a potential slowdown, with year-over-year growth expected at 70%, down from previous triple-digit gains.
Earnings per share for the quarter came in at $0.81, exceeding estimates of $0.75. Nvidia’s remarkable performance is largely driven by its data center business, which generated $30.8 billion in revenue—a 112% year-over-year increase, surpassing expectations of $28.82 billion. However, networking revenue within the segment declined, and the division remains heavily reliant on cloud service providers like Microsoft and Amazon’s AWS, which contributed 50% of its data center revenue, up from 45% in the prior quarter.
CEO Jensen Huang highlighted strong demand for Nvidia’s new Blackwell GPU lineup, which is now in full production, although supply challenges persist. Huang acknowledged that manufacturing constraints are limiting Nvidia’s ability to meet demand, a situation expected to improve in future quarters. Meanwhile, its earlier-generation Hopper GPUs continue to see robust demand.
Despite record growth, concerns remain about Nvidia’s customer concentration and production challenges. Analysts warn of little margin for error in 2025 as the company ramps up Blackwell production. Nvidia’s meteoric rise, fueled by the AI boom, has tripled its stock value in 2024, propelling its market capitalization to over $3.6 trillion. Its profits now outpace what it used to earn in total revenue, underscoring the scale of its transformation.
NVIDIA is a leading American multinational technology company renowned for its innovations in the field of graphics processing units (GPUs), artificial intelligence (AI), and high-performance computing. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, NVIDIA initially focused on developing graphics cards for gaming but has since expanded its expertise into areas such as AI, deep learning, data centers, and autonomous vehicles.
Its flagship product, the GeForce series, revolutionized gaming graphics, while its Tesla and Quadro GPUs are widely used in professional and scientific applications. NVIDIA’s advancements in AI, particularly through its CUDA platform and deep learning technologies, have played a crucial role in driving progress in fields like healthcare, research, and self-driving technologies. The company continues to lead in AI and machine learning innovations, shaping the future of computing across industries.
