NVIDIA BEATS EARNINGS EXPECTATIONS AS INVESTORS EYE DEMAND FOR BLACKWELL AI CHIPS

Nvidia on Wednesday reported a surge in third-quarter profit and sales as demand for its specialized computer chips that power artificial intelligence systems remains robust.

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For the three months that ended Oct. 27, the tech giant based in Santa Clara, California, posted revenue of $35.08 billion, up 94% from $18.12 billion a year ago.

Nvidia said it earned $19.31 billion in the quarter, more than double the $9.24 billion it posted in last year’s third quarter. Adjusted for one-time items, it earned 81 cents a share.

Wall Street analysts had been expecting adjusted earnings of 75 cents a share on revenue of $33.17 billion, according to FactSet.

Investors took the results in stride, however, and Nvidia’s high-flying stock slipped about 1% in afterhours trading. Shares in Nvidia Corp. are up 195% so far this year. Nvidia said it expects fourth quarter revenue to grow to $37.5 billion, plus or minus 2%. Analysts are expecting, on average, $37.09 billion.

“The age of AI is in full steam, propelling a global shift to Nvidia computing,” Jensen Huang, founder and CEO of Nvidia, said in a statement.

Nvidia’s third-quarter data center revenue was $30.8 billion, up 112% from a year ago. That growth was driven by demand for the Hopper computing platform for large language models, recommendation engines and generative AI applications, the company said.