1 day Ago By Firstpost
NVIDIA has once again wowed the tech world with its latest financial results. The company smashed expectations in its third-quarter earnings, showcasing a stellar performance that reflected its position as a major player in the AI boom. Revenue soared to a record $35.
1 billion, marking a staggering 94 per cent increase from the same period last year, and profits more than doubled, reaching $19.3 billion. This massive growth was accompanied by a 111 per cent boost in GAAP earnings per share, standing at $0.
78 per share. Gross margins dipped slightly to 74.6 per cent, but even that turned out to be better than analysts had predicted.
NVIDIA’s remarkable quarter not only outpaced forecasts but also reaffirmed its dominance in the AI-driven tech market. A significant chunk of NVIDIA’s revenue came from its data centre division , which brought in $30.8 billion.
This figure comfortably surpassed the $28 billion some analysts had anticipated. The data centre business plays a pivotal role in powering AI products, and its stellar performance underlines NVIDIA’s stronghold in the AI hardware space. The company’s leadership was also on display with the rollout of its highly anticipated Blackwell chips.
CEO Jensen Huang highlighted that production was in full swing and demand remained robust. Despite some pre-earnings jitters over potential delays, NVIDIA assured investors that it was meeting and even exceeding expectations for Blackwell deliveries this quarter. Ahead of the earnings report, NVIDIA’s stock experienced slight fluctuations, dipping 1 per cent before the announcement and a further 2 per cent in after-hours trading.
This was largely attributed to investors cashing in on the stock’s meteoric rise of 200 per cent since the start of the year. However, those holding on to their shares appear confident in NVIDIA’s ability to sustain its extraordinary growth. While there were concerns about production issues and overheating in certain data centre racks, the company addressed these calmly, stating that minor adjustments were “normal and expected.
” Such reassurances have helped maintain investor trust in the company’s trajectory. One potential challenge is a slight dip in gross margins, which NVIDIA’s CFO, Collette Kress, acknowledged during the earnings call. She explained that the initial rollout of Blackwell chips might push margins toward the lower 70s in the short term but assured investors this drop would be temporary.
Kress emphasised that the company remained focused on long-term profitability and expected margins to rebound soon. As NVIDIA continues its impressive run, all eyes are on whether it can keep up this incredible pace of growth. For now, the company stands tall as the undisputed leader in the AI hardware market, delivering explosive results and leaving the competition far behind.
.
