AI Kingpin Nvidia Obliterates Q3 Estimates 


Nvidia's impressive performance in the fiscal third quarter, attributing the success to significant growth in sales of AI processors for data centers. 

Nvidia surpassed Wall Street's expectations for Q3, reporting an adjusted earnings of $4.02 per share on sales of $18.12 billion.

Financial Performance 

ear-over-year, Nvidia's earnings increased by 593%, and sales soared by 206%, marking the second consecutive quarter of triple-digit percentage growth.

Nvidia experienced a substantial 279% year-over-year increase in data center sales, reaching a record $14.51 billion for the third quarter.

Data Center Sales:

Sequentially, data center sales increased by 41% from the second quarter.

Nvidia provided a strong sales forecast of $20 billion for the current quarter, a 231% increase from the prior year

Guidance and Forecast:

Analysts had predicted lower sales of $17.96 billion for the fiscal fourth quarter.

Despite the positive financial results, Nvidia's stock experienced a 1% decline in after-hours trading following the earnings report

Stock Performance:

The stock had previously broken out of a double-bottom base on November 9 at a buy point of $476.09.

Nvidia's CEO, Jensen Huang, attributes the company's growth to the transition from general-purpose to accelerated computing and generative AI in the industry.

CEO Commentary:

He notes the involvement of large language model startups, consumer internet companies, and global cloud service providers in adopting Nvidia's processors.

Nvidia introduced new data center processors optimized for AI, including the HGX H200 AI computing platform and GH200 Grace Hopper Superchip.

Recent Developments:

 The company's stock is listed on IBD 50, Leaderboard, and Tech Leaders, and it ranks first out of 37 stocks in IBD's fabless semiconductor industry group.

Nvidia's strong position in the AI chip market, with significant demand for its processors in data centers contributing to impressive financial results and stock performance.