Demand for AI Drives Nvidia’s Profits; Modest Reaction

Nvidia, the semiconductor giant and Wall Street’s largest company, once again surpassed market expectations. The company’s third-quarter results reflected a positive impact from the surging demand for artificial intelligence (AI) technology.

Nvidia reported revenue of $35 billion, exceeding the $33.2 billion consensus estimate by 5%. Earnings per share came in at $0.81, slightly above the expected $0.74 per share.

The gaming division generated $3.3 billion in revenue, while data center revenue—crucial for AI operations—reached $30.8 billion, surpassing the $29.1 billion consensus estimate.

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“The era of AI is in full swing, driving a global shift to Nvidia computing,” said Nvidia CEO Jensen Huang. “The demand for Hopper and the excitement surrounding Blackwell are incredible,” he added, referring to two of the company’s most powerful chips.

High Expectations, Modest Reaction

While Nvidia’s quarterly results outpaced expectations, the margin of outperformance was not extraordinary. During regular trading, Nvidia shares slipped 0.80% to $145.84 and declined an additional 1.34% to $143.95 in after-hours trading.

Despite the dip, Nvidia’s stock has soared over 190% year-to-date, with a more than 10% gain this month alone. As of today’s close, the company’s market capitalization stands at $3.56 trillion, solidifying its position as the world’s largest company.