Nvidia Corp Reports Record $35.1B 3rd Quarter Revenue, a 94% Increase From Last Year

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Nvidia Corp reported a remarkable third-quarter performance, with revenue reaching a record $35.1 billion. This represents a 94% increase from the same period last year and a 17% jump from the prior quarter. The tech giant's GAAP earnings per share surged 111% year-over-year, with non-GAAP earnings also climbing 103%. Nvidia's dominance in artificial intelligence (AI) chips is the driving force behind these stellar results, with its Data Center segment alone contributing $30.8 billion in revenue, a 112% annual increase.

CEO Jensen Huang stated, “The age of AI is in full steam, propelling a global shift to Nvidia computing.” Demand for Nvidia's cutting-edge Hopper and Blackwell chips remains high as enterprises and governments invest heavily in AI infrastructure.

Why Nvidia Investors Are Celebrating

Nvidia’s performance reinforces its position as a leader in the AI revolution. The company’s gaming division also posted growth, with revenue rising to $3.3 billion, up 15% year-over-year. For Q4, Nvidia projects revenue of $37.5 billion, signaling continued strong demand. However, CFO Colette Kress noted that supply constraints for Blackwell chips may persist into fiscal 2026 as demand exceeds supply.

The AI boom continues to drive Nvidia’s growth. Major clients like Microsoft, Oracle, and OpenAI are already utilizing its next-generation Blackwell chips, with shipments ramping up next year. Nvidia’s forward momentum, fueled by industry partnerships and technological advancements, keeps investors optimistic.

How Does Nvidia Compare to Industry Peers?

While Nvidia dominates the AI chip market, competitors like AMD and Intel are attempting to catch up. However, Nvidia’s early investment in AI hardware and software gives it a significant edge. Its data center revenue alone surpasses the total revenue of some competitors, showcasing its unparalleled market leadership.

This dominance has not gone unnoticed by regulators, with global governments closely monitoring Nvidia’s influence. As AI continues to transform industries, Nvidia’s competitive advantages and proactive strategies keep it ahead of the curve.

Is Nvidia Corp Still a Good Buy for Investors?

For current investors, Nvidia’s Q3 results reaffirm the company’s growth potential. But is it still a good time for new investors? Nvidia’s stock has nearly tripled in 2024, driven by optimism around its AI chips. While the company’s long-term prospects remain strong, some analysts warn that its high valuation may limit short-term upside.

Additionally, revenue growth has slowed compared to earlier quarters, and supply constraints could pose challenges in meeting surging demand. Investors must weigh Nvidia’s high stock price against its continued leadership in the AI space. Long-term portfolios may benefit, but new investors might want to monitor price adjustments for a more favorable entry point.

What This Means for Nvidia’s Future

Nvidia’s expansion into gaming, automotive, and robotics further diversifies its revenue streams. Its collaborations with tech giants and governments underscore its role in shaping the AI-driven future. For long-term investors, Nvidia’s leadership offers significant potential for sustained growth.

However, the company faces challenges, including regulatory scrutiny and supply limitations. The ongoing AI revolution will keep Nvidia in the spotlight, but short-term volatility is possible as the market adjusts to new trends and valuations.

Public Reaction and Analyst Perspectives

Despite record-breaking results, Nvidia’s stock dropped 2% in after-hours trading, likely due to tempered expectations for Q4 growth. Analysts, however, remain bullish, emphasizing Nvidia’s pivotal role in the booming AI industry. Many maintain strong buy ratings, citing the company’s technological advancements and market dominance as key strengths.

Is Nvidia Corp still a good buy for investors late to the party? Tell us what you think!

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