Nvidia reported stronger-than-expected earnings after the market closed on Wednesday, continuing to benefit from the ongoing artificial intelligence (AI) boom. The company posted impressive results for the quarter ending on October 27, with revenue of $35.08 billion, surpassing the $33.16 billion expected by analysts surveyed by LSEG. Earnings per share (EPS) came in at 81 cents adjusted, exceeding the forecasted 75 cents.
The company’s outlook also outperformed expectations. Nvidia projected sales of about $37.5 billion, plus or minus 2%, for the current quarter, slightly ahead of analysts’ consensus of $37.08 billion. The fourth-quarter forecast suggests a remarkable 70% growth year-over-year, underscoring the company’s dominant position in the AI-driven market.
Nvidia’s data center division, a key driver of growth, reported $30.8 billion in revenue, far exceeding the $28.82 billion analysts were expecting. This continued strength in data centers reflects Nvidia’s critical role in powering AI infrastructure, which has been a major tailwind for the company. Net income surged to $19.3 billion, or 78 cents per share, compared to $9.24 billion, or 67 cents per share in the same quarter last year.
Despite a remarkable 94% year-over-year revenue growth during the quarter, Nvidia acknowledged a slight slowdown in its growth trajectory compared to previous quarters. In the three prior quarters, the company saw revenue increases of 122%, 262%, and 265%, respectively. However, the continued growth, albeit at a slower pace, is still a testament to Nvidia’s leadership in the rapidly expanding AI space.
Nvidia’s stock has been on a tear, with shares nearly tripling in value so far in 2024. This surge has helped propel Nvidia to become the most valuable publicly traded company, further solidifying its role as a key player in AI technology. As the AI boom continues to fuel demand for its products, Nvidia’s future looks incredibly promising, with the company well-positioned to continue reaping the benefits of this technological revolution.
