Nvidia, a chip maker based in New York, has exceeded market expectations in terms of revenue and turnover for the third quarter. This comes as no surprise, as the company has exceeded analysts’ forecasts 20 times in the last 21 quarters. The company’s founder and CEO, Jensen Huang, attributes this success to the growing demand for their products, particularly among artificial intelligence developers.
During the period of August-October, Nvidia’s revenue increased to $18.1 billion from $5.9 billion the previous year, surpassing the analysts’ expectation of slightly more than $16 billion. This marks Nvidia’s best ever turnover, growing by 34 percent from the second quarter. The majority of this growth is attributed to the sale of chips for data centers related to artificial intelligence development, which increased by 271 percent to $14.5 billion from the previous year.
The company’s sales of graphics processors for gaming machines also exceeded analysts’ expectations, reaching $2.9 billion. Operating profit for the company soared to $11.6 billion from $1.5 billion the previous year, surpassing the analyst expectation of $9.8 billion.
Despite the company’s recent success, analysts remain skeptical about Nvidia’s growth in 2025 due to concerns about potential availability problems and a potential decline in the artificial intelligence market. However, CEO Jensen Huang remains optimistic, stating that growth is still possible as the company continues to expand its customer base globally and develop products for new industries.
Additionally, Nvidia faces challenges due to restrictions on technology exports to certain countries, which accounts for 20–25 percent of the company’s data center turnover. Sales to these destinations are expected to decrease significantly in the fourth quarter of the fiscal year 2024, but the decrease will be compensated by strong growth in other areas.