The market leader in AI, Nvidia, provided excellent quarterly results for the third quarter of 2024. It recorded a 94 percent growth over the same period last year, generating $35.08 billion in revenues for the three months that ended October 27 compared with $18.12 billion in the same period the previous year. Net income rose by 102.3% to $19.31 billion on the back of its ability to design the most advanced AI technology.
But nonetheless, the fact remains that Nvidia has managed to achieve such marvelous results; its stocks are down by 3% in after-hours trading. This decline is in line with investors’ anticipation of below-expected results in the subsequent periods, despite the fact that the company is providing a fourth-quarter revenue guide of $37.5bn, slightly above Street’s estimates of $37.09bn.
How are AI Chips Contributing to Nvidia’s Success?
Nvidia again saw its data centers’ revenue go up to $30.8 billion; this is a 112% leap from the last year due to the Hopper computing platform. This technology is used by large language models, generative AI, recommendation engines, and more. There are two main claims from the article: firstly, CEO Jensen Huang pointed out that there is a new age known as the age of AI that is revolutionizing industries across the world, and, secondly, Nvidia is ready to lead this revolution.
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One of the primary issues for Nvidia is the limited availability of its next-generation Blackwell AI chips, on which it relies to stay ahead of the competition in the emerging AI chip space. Sales volume for these chips is estimated to be growing in fiscal 2026, but supply is likely to be short of demand for several fiscal quarters. However, the firm proposes to ship Blackwell chips higher than planned, indicating strong demand from leading firms such as OpenAI.
Nvidia Stock Performance and Outlook
The importance of Nvidia is amply reflected in its stellar performance this year; it has zoomed 195% in stock. However, the recent downturn after Q3 is better associated with investors’ hesitance. They say this could be the reason that Nvidia has had such a conservative outlook for this year. Forrester Research’s Alvin Nguyen said, “Short term, I believe there is no problem in the demand for AI.” There is nothing that Nvidia should not be doing.
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Conclusion
The Q3 results of Nvidia demonstrate its dominant position in developing and producing technologies based on artificial intelligence, which is in great demand and shows impressive sales growth. As stock prices soared and plummeted, Nvidia has room to grow as the chip maker continuously innovates AI chips to cater to the world’s needs. Investors have been carrying on perceiving Nvidia as a juggernaut of the emergent AI revolution.
