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Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips

Nov 20, 2024 - financialpost.com
Nvidia reported a significant increase in third-quarter profit and sales due to the robust demand for its specialized computer chips used in artificial intelligence systems. The tech giant's revenue rose to $35.08 billion, a 94% increase from the previous year, while its earnings doubled to $19.31 billion. The company's data center revenue also saw a 112% increase, driven by the demand for the Hopper computing platform.

Investors are closely watching Nvidia's guidance on its Blackwell graphics processor unit, a next-generation artificial intelligence chip. The company's CFO, Colette Kress, announced that Blackwell production shipments are set to begin in the fourth quarter of fiscal 2025 and will continue to ramp into fiscal 2026. However, she also noted that the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026.

Key takeaways:

  • Nvidia reported a surge in third-quarter profit and sales, with revenue of $35.08 billion, up 94% from a year ago, and earnings of $19.31 billion, more than double from last year's third quarter.
  • The tech giant's third-quarter data center revenue was $30.8 billion, up 112% from a year ago, driven by demand for the Hopper computing platform for large language models, recommendation engines and generative AI applications.
  • Investors and analysts are closely watching Nvidia's guidance on its Blackwell graphics processor unit, a next-generation AI chip that has seen demand from companies like OpenAI and others building AI data centers.
  • Nvidia's stock has soared nearly 150% in the first six months of the year, with the company now worth over $3.5 trillion and analysts closely monitoring its path to $4 trillion.
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