Nvidia, the world’s largest company with a market cap of $3.5 billion, reported its third-quarter earnings on Wednesday after the market closed.
Lukman Otunuga, senior market analyst at online trading broker FXTM, said A businessman before the earnings release that “with Nvidia’s jaw-dropping performance in 2024, expectations are very high.”
“Earnings may propel the stock higher or pull it below key support levels, depending on the direction shared,” Otunuga noted in an emailed statement.
Related: Why Prominent Investor, ‘Britain’s Warren Buffett,’ Is Staying Away From Nvidia Stock
Nvidia’s total profit was $35.1 billion, above estimates of $33.2 billion, while the AI chipmaker’s data center revenue was $30.8 billion, also above $29.1 billion.
Melissa Otto, head of technology, media, and communications research at S&P Global Visible Alpha, told Bloomberg before the discovery that Nvidia’s “meet or beat” figure was $29 billion in data center revenue; Nvidia hit the forecast on Wednesday.
Nvidia has announced that it will begin shipping its new AI Blackwell chip in the fourth quarter and that demand is expected to outstrip supply for several quarters. The company forecast its fourth-quarter revenue at $37.5 billion.
Bloomberg data predicts a near $300 billion swing in Nvidia’s market value on Thursday, or an 8% move.
Related: Here’s Why Nvidia Just Broke Another Record
A critical issue for Nvidia is its new Blackwell chip, which CEO Jensen Huang says has met “inverse demand.”
Although the chip has recently faced reports of overheating, Otto says Blackwell is expected to bring in $63 billion in revenue for the company next year, a 10% increase from forecasts given last week.
“Obviously emotions are building up for Blackwell,” Otto said.
Related: ‘100% Nvidia’s fault’: CEO Jensen Huang Says ‘Reverse’ Demand Company’s AI Chip Had a Critical Design Flaw
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