Nvidia, the world’s largest company with a 3.5 trillion dollars market capitalization, reported announced its third-quarter results on Wednesday after the market closed.
Lukman Otunugasenior market analyst at online trading broker FXTM, said Entrepreneur before releasing the outcomes: “Given Nvidia’s stunning performance in 2024, expectations are sky-high.”
“Earnings could either push the stock to new all-time highs or push it below key support levels, depending on shared forecasts,” Otunuga noted in an emailed statement.
Related: Why a outstanding investor, “British Warren Buffett,” is staying away from Nvidia shares
Nvidia’s total revenue was $35.1 billion, above estimates of $33.2 billion, and the AI chip maker’s data center revenue was $30.8 billion, also ahead of $29 expected .1 billion US dollars.
Melissa Otto, head of technology, media and telecommunications research at S&P Global Visible Alpha, said Bloomberg before revenue Nvidia needed to “meet or exceed” was $29 billion for data center revenue; Nvidia exceeded forecast on Wednesday.
Nvidia said it’s going to begin shipping its latest Blackwell AI chip within the fourth quarter and that demand is predicted to outstrip supply for several quarters. The company forecast fourth-quarter revenue of $37.5 billion.
Bloomberg data predicted an almost $300 billion increase in Nvidia’s market value on Thursday, or an 8% move in either direction.
Related: Here’s why Nvidia just broke one other record
The key issue for Nvidia is the brand new Blackwell chip, which CEO Jensen Huang says is seeing “insane demand.”
Although the chip has recently faced reports OverheatingOtto says Blackwell is predicted to bring the corporate $63 billion in revenue next 12 months, up 10% from last week’s forecasts.
“Obviously the mood around Blackwell is improving,” Otto said.
Related: ‘100% Nvidia’s fault’: CEO Jensen Huang says the corporate’s AI chip with ‘insane’ demand had a key design flaw
