NVIDIA (NVDA) released third-quarter results after the bell Wednesday that beat expectations due to strong sales of its high-powered AI chips, fueling what its CEO Jensen Huang called “the era of ‘AI’.
Nvidia, the world’s largest publicly traded company by market capitalization, reported earnings per share (EPS) of $0.81 on revenue of $35.1 billion. Analysts were expecting EPS of $0.74 on revenue of $33.2 billion.
Nvidia also said it expects revenue of $37.5 billion, plus or minus 2%, for the fourth quarter. That’s just above Wall Street’s expectations of $37 billion.
Nvidia’s stock price lurched Thursday morning, hitting an intraday record before stabilizing around the flat line as investors weighed forecasts.
Check out Dan Howley’s Reddit AMA about Nvidia’s latest earnings report.
“The AI era is in full swing, propelling a global shift toward Nvidia computing,” Huang said in a statement. “The demand for Hopper and the anticipation for Blackwell – in full production – is incredible as core model creators scale pre-training, post-training and inference.”
The chip giant’s Data Center business, which accounts for the vast majority of its revenue, brought in $30.8 billion in the quarter, beating analysts’ expectations of $29 billion and jumping by 112% from the segment’s $14.5 billion in last year’s third quarter.
Nvidia’s gaming revenue was $3.3 billion, compared to the $2.8 billion the division generated last year. Analysts expected $3 billion.
Nvidia stock has continued to soar throughout 2024, driven by the explosive growth of AI across the technology landscape and beyond.
Learn more: Nvidia has almost tripled its value in 11 months: is it time to invest?
Nvidia also appeared to allay concerns about a potential slowdown in availability of its next-generation Blackwell chip, with CFO Colette Kress saying the AI GPU would begin shipping in the current quarter and continue into the year at come.
“The Hopper and Blackwell systems have some supply constraints, and demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026,” she added.
Learn more: How does Nvidia make money?
Nvidia shares are up 192% year-to-date as of Wednesday, easily outpacing all of the company’s chipmaker competitors. AMD (AMD), its closest competitor, has seen its stock price fall more than 5% since the start of the year, while Intel (INTC), which is facing a difficult recovery, saw its stock plunge by nearly 52%.
Nvidia faces an uncertain future, given that Donald Trump has threatened to impose blanket tariffs on products around the world.