Nvidia CEO Jensen Huang touted “off the charts” demand for its advanced computer chips because the tech titan reported strong third-quarter results on Wednesday – a serious relief for investors who’ve fretted a few potential AI bubble.
The AI chip giant also provided strong fourth-quarter guidance, indicating it expects sales of $65 billion – higher than the $61.66 billion predicted on Wall Street, in keeping with LSEG data.
The outcomes were expected to regular markets, which were wobbly in recent days over concerns that tech stocks are overvalued and AI firms have overspent on the fledging technology, with little revenue to indicate for it.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” Huang said in an announcement, referring to Nvidia’s most advanced chips.
“The AI ecosystem is scaling fast — with more recent foundation model makers, more AI startups, across more industries, and in additional countries. AI goes in all places, doing every thing, unexpectedly.”
Nvidia shares surged 4% in after-hours trading on the strong results.
Its performance is seen as an important bellwether because the tech industry’s biggest players – including OpenAI, Amazon, Microsoft, Google and Meta – depend on Nvidia’s chips to power their data centers and AI models.
“Nvidia earnings are such a vital event each due to the weighting that the stock has in the main equity indices and since it’s ground zero for your complete artificial intelligence construct out,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Within the third quarter, Nvidia posted earnings of $1.30 per share, besting the $1.25 estimated by analysts. The corporate’s overall revenue was $57.01 billion, which also got here in ahead of expectations and was up 22% in comparison with the identical quarter one yr ago.
The corporate’s data center unit, which provides the majority of its revenue, booked sales of $51.2 billion for the quarter.
Looking ahead, Nvidia said it expects an adjusted gross margin of 75% in the present quarter, which was barely ahead of an expected 74.5%.
Last month, Huang said Nvidia already has $500 billion in chip deals on the books through 2026.
Nevertheless, fears about Nvidia’s outlook mounted in the times ahead of its earnings release after Japanese investment giant Softbank and billionaire tech investor Peter Thiel each dumped all of their stakes in the corporate. That jumpstarted concerns that Nvidia shares were overvalued.
Wedbush analyst Dan Ives, known for his bullish views on the AI sector, said Nvidia’s results should “reignite the bullish tech trade into year-end.”
“Fears of an AI Bubble are way overstated in our view … that is one other validation point for the AI revolution and our view we’re in the highest of the third inning of this AI game,” Ives added.
Nvidia CEO Jensen Huang touted “off the charts” demand for its advanced computer chips because the tech titan reported strong third-quarter results on Wednesday – a serious relief for investors who’ve fretted a few potential AI bubble.
The AI chip giant also provided strong fourth-quarter guidance, indicating it expects sales of $65 billion – higher than the $61.66 billion predicted on Wall Street, in keeping with LSEG data.
The outcomes were expected to regular markets, which were wobbly in recent days over concerns that tech stocks are overvalued and AI firms have overspent on the fledging technology, with little revenue to indicate for it.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” Huang said in an announcement, referring to Nvidia’s most advanced chips.
“The AI ecosystem is scaling fast — with more recent foundation model makers, more AI startups, across more industries, and in additional countries. AI goes in all places, doing every thing, unexpectedly.”
Nvidia shares surged 4% in after-hours trading on the strong results.
Its performance is seen as an important bellwether because the tech industry’s biggest players – including OpenAI, Amazon, Microsoft, Google and Meta – depend on Nvidia’s chips to power their data centers and AI models.
“Nvidia earnings are such a vital event each due to the weighting that the stock has in the main equity indices and since it’s ground zero for your complete artificial intelligence construct out,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Within the third quarter, Nvidia posted earnings of $1.30 per share, besting the $1.25 estimated by analysts. The corporate’s overall revenue was $57.01 billion, which also got here in ahead of expectations and was up 22% in comparison with the identical quarter one yr ago.
The corporate’s data center unit, which provides the majority of its revenue, booked sales of $51.2 billion for the quarter.
Looking ahead, Nvidia said it expects an adjusted gross margin of 75% in the present quarter, which was barely ahead of an expected 74.5%.
Last month, Huang said Nvidia already has $500 billion in chip deals on the books through 2026.
Nevertheless, fears about Nvidia’s outlook mounted in the times ahead of its earnings release after Japanese investment giant Softbank and billionaire tech investor Peter Thiel each dumped all of their stakes in the corporate. That jumpstarted concerns that Nvidia shares were overvalued.
Wedbush analyst Dan Ives, known for his bullish views on the AI sector, said Nvidia’s results should “reignite the bullish tech trade into year-end.”
“Fears of an AI Bubble are way overstated in our view … that is one other validation point for the AI revolution and our view we’re in the highest of the third inning of this AI game,” Ives added.
