Nvidia crushes earnings expectations on AI chip demand

You May Be Interested In:Latest symptoms of COVID-19: New strain presents like the common cold


Nvidia is under pressure to meet high expectations with its coming Blackwell processing system for powering artificial intelligence (I-Hwa CHENG)

US chipmaking behemoth Nvidia said Wednesday it made a $19 billion profit on record high revenue last quarter as demand continued for its hardware to power artificial intelligence.

Nvidia reported quarterly sales of $35.1 billion, some $2 billion more than market expectations.

“The age of AI is in full steam, propelling a global shift to Nvidia computing,” said founder and chief executive Jensen Huang.

“AI is transforming every industry, company and country.”

Huang said that Nvidia’s keenly anticipated Blackwell processing platform is in full production and the company is seeing “incredible demand” for the new offering along with current-generation Hopper processors.

“Enterprises are adopting agentic AI to revolutionize workflows,” Huang said.

“Industrial robotics investments are surging with breakthroughs in physical AI, and countries have awakened to the importance of developing their national AI and infrastructure.”

Nvidia surpassed Apple early this month to become the highest valued company in the world as the artificial intelligence boom continues to excite Wall Street.

Following its quarterly report, Nvidia’s share price ebbed nearly two percent in after-hours trading to $143.24.

Investors may have been concerned about the company stating that its margin, the amount of money it makes off processors, is expected to narrow.

“Despite Nvidia’s technological leadership through CUDA and its first-mover advantage in AI infrastructure, there’s little room for execution missteps in 2025,” said Emarketer analyst Jacob Bourne.

“Particularly given uncertainties around Blackwell’s rollout and increasing competition from both AMD and key customers’ in-house chip development efforts.”

The market is also likely weighing geopolitical factors, such as the potential for trade turbulence with China after Donald Trump returns to the White House in January.

Nvidia relies on TSMC in Taiwan for its coveted graphics processing units.

The world’s biggest tech companies have invested tens of billions of dollars into Nvidia’s powerful AI chips and software to get their ChatGPT-style AI models up and running.

Microsoft, Google, Meta, Tesla and Amazon all depend on Nvidia technology to train generative AI models and execute the heavy computing workloads needed to deploy the new technology.

Ahead of the latest earnings, Nvidia’s share price had nearly tripled year-to-date and has accounted for a third of the broad-based S&P 500 index’s gains this year.

gc/des

share Paylaş facebook pinterest whatsapp x print

Similar Content

'Fat Leonard,' Navy contractor behind one of the military's biggest scandals, sentenced to 15 years
‘Fat Leonard,’ Navy contractor behind one of the military’s biggest scandals, sentenced to 15 years
Download app from appStore
Mayor Brandon Johnson releases 2023 tax returns. Here’s what they say.
'We Did Not Enhance That': Jimmy Fallon Taken Aback By New Pic Of Trump
‘We Did Not Enhance That’: Jimmy Fallon Taken Aback By New Pic Of Trump
Donald Trump Gushes Over ‘Fair’ Bret Baier After Fox News’ Kamala Harris Interview
Donald Trump Gushes Over ‘Fair’ Bret Baier After Fox News’ Kamala Harris Interview
The COP16 is being held in Cali, Colombia, from October 21 to November 1, 2024 (Joaquin Sarmiento)
UN biodiversity conference: what’s at stake?
Zack Matthews.
Woman plans “gingerbread house” date, engineer husband takes over
Flashpoint Daily | © 2024 | News