Nvidia (NVDA) reported third quarter earnings after the bell on Wednesday that topped expectations on the strength of sales of its high-powered AI chips fueling what its CEO Jensen Huang called the “age of AI.”
The world’s largest publicly traded company by market cap, Nvidia reported earnings per share (EPS) of $0.81 on revenue of $35.1 billion. Analysts were anticipating EPS of $0.74 on revenue of $33.2 billion.
Nvidia also said it anticipates revenue of $37.5 billion, plus or minus 2%, for the fourth quarter. That is just ahead of Wall Street expectations of $37 billion.
Nvidia’s stock price fell roughly 1% on the news.
“The age of AI is in full steam, propelling a worldwide shift to Nvidia computing,” Huang said in an announcement. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training, and inference.”
The chip giant’s Data Center business, which makes up the overwhelming majority of its revenue, brought in $30.8 billion within the quarter, beating out analysts’ expectations of $29 billion and jumping 112% versus the $14.5 billion the segment made in Q3 last 12 months.
Nvidia’s gaming revenue got here in at $3.3 billion, up from the $2.8 billion the division brought in last 12 months. Analysts were in search of $3 billion.
Nvidia’s stock has continued to rocket higher throughout 2024, due to the explosive growth in AI across the tech landscape and beyond.
Nvidia also appeared to assuage concerns about potential slowdowns in the provision of its next-generation Blackwell chip, with CFO Colette Kress saying that the AI GPU will begin shipping in the present quarter and ramp into the 12 months ahead.
“Each Hopper and Blackwell systems have certain supply constraints, and the demand for Blackwell is predicted to exceed supply for several quarters in fiscal 2026,” she added.
Read more: How does Nvidia earn a living?
Shares of Nvidia were up 192% 12 months to this point as of Wednesday, easily outpacing any of the corporate’s chipmaker rivals. AMD (AMD), the closest competitor, has seen its stock price sink over 5% 12 months to this point, while Intel (INTC), which is contending with a difficult turnaround, has seen its stock plunge nearly 52%.
Nvidia is facing an uncertain future, provided that Donald Trump has threatened to place blanket tariffs on products from around the globe.
As well as, the president-elect has raised the specter of tariffs on Taiwan-made chips. That will be a possible alternative to the CHIPS Act, which is designed to bring semiconductor manufacturing back to the US.