Nvidia had a successful third quarter, beating analysts’ expectations for both revenue and earnings. Despite this, the company’s stock lost ground in after-hours trading due to investors’ even higher expectations for the company.

In the third quarter, Nvidia’s net income and diluted EPS both increased by 1,274% compared to the same time last year. The company’s revenue also surged by 206% to $18.1 billion, marking significant growth in the AI space.

Despite this growth and expectations of $20 billion in revenue for the fourth quarter, Nvidia’s stock fell approximately 1% in after-hours trading. However, the company’s data center business has experienced rapid growth, with revenue reaching a record $14.51 billion in the latest quarter.

As demand for AI products continues to surge, Nvidia remains well-positioned among chipmakers and has expanded its suite of products to cater to the Chinese market. Despite U.S. export restrictions, Nvidia has adapted to these challenges and is poised for continued growth.

Yet, despite this success, Nvidia’s stock has tripled in value over the past year culminating in an all-time high of over $504 per share just one day before the third-quarter earnings report.

By Editor

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