Nvidia reported strong third-quarter results that surpassed market expectations, with revenue and earnings both coming in higher than analysts had forecasted. The company has a track record of beating expectations in recent years, posting better-than-expected results in 20 out of the last 21 quarters. The demand for Nvidia’s microchips, particularly those designed for artificial intelligence applications, has been driving the company’s growth.
Nvidia’s CEO Jensen Huang attributes the company’s success to the ongoing development and demand for artificial intelligence technology. The third-quarter results showed a significant increase in revenue, with a record-setting $18.1 billion, up 34% from the previous quarter. Much of this growth has been driven by sales of chips for data centers related to artificial intelligence development, as well as graphics processors for gaming machines.
The company’s operating profit also saw a substantial increase, rising to $11.6 billion from $1.5 billion the previous year. Earnings per share came in at $4.02, well above the analysts’ expectations of $3.37. Looking ahead, Nvidia has forecast a fourth-quarter revenue target of approximately $20 billion.
Despite this strong performance, some analysts have expressed concerns about Nvidia’s growth potential in the future due to restrictions on technology exports to certain countries and potential saturation in the market for artificial intelligence applications. However, CEO Jensen Huang remains optimistic about the company’s future prospects citing expanding customer base and product development in new industries as key factors driving growth.
Additionally, Nvidia has faced challenges related to geopolitical issues including restrictions on technology exports to certain countries which may affect its future growth plans but it is focused on innovation and expanding its global reach.