Chip giant Nvidia once again exceeded the expectations of many stock market experts. In the third quarter, the company increased sales by 62 percent. The AI boom continues.
The AI boom is causing chip company Nvidia’s business to continue to grow explosively. In the last quarter, sales jumped 62 percent year-on-year to $57 billion (49.4 billion euros). Nvidia beats Wall Street expectations. In fact, compared to the previous quarter, there was an increase of 22 percent.
Nvidia shares temporarily rose more than three percent in after-hours trading. Prices of other chip companies also rose. Shares of major customers Nvidia, Google, Microsoft, Amazon and Meta also rose.
“Blackwell’s chip sales numbers are very high,” said CEO Jensen Huang. Processors for Data Centers are sold out. “The need for computing power is increasing exponentially.”
Nvidia’s chip system has become a key technology for the development of software with artificial intelligence. They are used for training complex AI models, for example for ChatGPT chatbots – as well as for operating software. Nvidia’s results have become an indicator of the state of the AI industry.
In recent weeks, concerns have grown in the stock market that high expectations for future artificial intelligence businesses could lead to a bubble in the share prices of technology companies. Therefore, investors let out a breath of fresh air. Nvidia’s market value fell from $5 to about $4.5 trillion in a few weeks. The chip company remains the most valuable company on the exchange.
The bottom line is that Nvidia increased its quarterly profit by 65 percent year-over-year to $31.9 billion. The group’s earnings per share came in above analysts’ estimates. Nvidia also clearly exceeded their expectations with sales estimates of $65 billion for the current quarter. On average, market experts estimate sales estimates at 61.5 billion dollars. Nvidia continues to achieve growth without the once-important Chinese market, where the group currently no longer has any business following US export restrictions and government countermeasures in China.
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