Nvidia reported a strong third-quarter performance that surpassed market expectations, with revenue and earnings both exceeding analysts’ forecasts. The company has consistently outperformed expectations in recent years, posting better-than-expected results in 20 out of the last 21 quarters. Nvidia’s microchips, especially those designed for artificial intelligence applications, have been in high demand, driving the company’s growth.
Nvidia’s CEO Jensen Huang attributed the company’s success to the ongoing development and demand for artificial intelligence technology. The third-quarter results showed a significant increase in revenue, with a record-setting $18.1 billion, up 34% from the previous quarter. Much of this growth has been driven by sales of chips for data centers related to artificial intelligence development, as well as graphics processors for gaming machines.
The company’s operating profit also saw a substantial increase, rising to $11.6 billion from $1.5 billion the previous year. Earnings per share came in at $4.02, well above the analysts’ expectations of $3.37. Looking ahead, Nvidia has forecast a fourth-quarter revenue target of approximately $20 billion.
Despite this strong performance, some analysts have expressed concerns about the company’s growth potential in the future. Restrictions on technology exports to certain countries have raised questions about sustainability of Nvidia’s growth potential and saturation in AI applications market may also limit its future prospects