Nvidia’s Revenue Continues to Soar on AI Growth

Nvidia’s Q3 performance exceeded even the usual lofty expectations of the company, driven by unrelenting demand for its AI-focused chips. Revenue surged to $35.08 billion, up 94% from a year ago and ahead of the $33.16 billion analysts predicted. Adjusted earnings per share came in at 81 cents, beating the expected 75 cents. Despite this, Nvidia shares dipped 2% in after-hours trading.

The company predicts that Q4 revenue will come in at an even higher number - $37.5 billion - which is slightly above market estimates of $37.08 billion. This means a likely year-over-year growth of 70%, a slowdown compared to last year’s 265% growth in the same period. 

Nvidia’s net income climbed to $19.3 billion, or 78 cents per share, doubling from $9.24 billion, or 67 cents per share, a year earlier. Its gross margin rose to 73.5%, as higher-margin data center chips made up a larger share of sales.

What Does This Mean for Me?

Nvidia’s gaming segment contributed $3.28 billion in revenue, surpassing expectations of $3.03 billion. However, it was the company’s data center division, Nvidia’s main revenue engine, that blasted the doors open with $30.8 billion in revenue, soaring 112% year over year. 

Networking parts contributed $3.1 billion of this figure. Nvidia’s next-generation AI chip, Blackwell, has begun shipping to key partners like Microsoft and OpenAI, with shipments expected to ramp up further next year.