On Wednesday, Nvidia Corporation recorded an increase in the fiscal third quarter, which beat estimates and delighted investors.
Its stock price descended by -0.76% to $145.89 per piece on November 20’s Asian afternoon session. More concretely, it is expected to plunge by -2.46% to $142.25 a share in the after-hours trading.
Conversely, the company’s earnings per share (EPS) jumped to $0.81, surpassing the experts’ $0.75 outlook and the $0.68 in the last quarter.
Similarly, its revenue leaped to $35.10 billion, topping the analysts’ $33.09 billion projections and the previous $30.00 billion figure. Correspondingly, the revenue for the current period ascended by 94.00% year-on-year (YoY).
On top of that, Nvidia continued to see a steady influx of profits, with net income rising to $19.30 billion in the quarter. Subsequently, the latest data exceeded the $9.24 billion figure in the same period last year.
More importantly, the results indicate that the chip maker is experiencing rapid growth driven by surging enterprise demand.
However, investors underscored that its revenue growth has slowed compared to the past three quarters. They noted that the earlier periods registered sales boosts of 122.00%, 262.00%, and 265.00%, respectively.
In addition, Nvidia incurred a demand surge for its Blackwell GPU chips, which seemingly eased financial setbacks concerns.
AI Demand Renders Advancing Nvidia Sales
Based on reports, robust artificial intelligence (AI) demand generated favorable sales for Nvidia.
More specifically, the demand came from GPU purchases of cloud infrastructure providers and other enterprises. This specialized electronic circuit handles the bulk of AI workloads today.
In line with this, it is the sole beneficiary of the industry’s race to focus on smart technology. The strong position allowed the manufacturer to become the most valuable publicly traded company globally.
According to founder and Chief Executive Jensen Huang, Nvidia computing is at the forefront of the AI revolution, driving a worldwide shift.
