NVIDIA Revenue Doubles As AI Chip Demand Remains Strong

NVIDIA’s stock slid in premarket trading on Thursday following underwhelming third-quarter earnings results. NVIDIA dominates the market for high-performance chips that drive cutting-edge AI models, including OpenAI’s ChatGPT. NVIDIA’s third-quarter sales growth slowed despite nearly doubling year-over-year, following explosive expansion in previous quarters (122% in Q2, 262% in Q1, and 265% in Q4 2023).

NVIDIA announced Q3 2024 revenue of $35.1 billion, representing a 17% sequential increase and a 94% year-over-year surge. The company’s Q3 GAAP earnings per diluted share rose to $0.78, representing a 16% sequential increase and a 111% year-over-year surge. NVIDIA’s Q3 non-GAAP earnings per diluted share reached $0.81, increasing 19% sequentially and 103% year-over-year.

“The age of AI is in full steam, propelling a global shift to NVIDIA computing,” said Jensen Huang, founder and CEO, NVIDIA. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference,” said Huang. “AI is transforming every industry, company and country. Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure,” he further said.

NVIDIA announced a quarterly cash dividend of $0.01 per share, payable on December 27, 2024, to shareholders of record as of December 5, 2024.

NVIDIA: Financial Outlook

The company announced fourth-quarter fiscal 2025 Outlook, given below:

• Revenue to be at $37.5 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins to be at 73.0% and 73.5%, respectively, plus or minus 50 basis points.
  GAAP and non-GAAP operating expenses to be approximately $4.8 billion and $3.4 billion, respectively.
• GAAP and non-GAAP tax rates to be 16.5%, plus or minus 1%, excluding any discrete items.

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