Nvidia (NVDA) Stock Jumps 10% as Q3 Revenue Hits $57 Billion Beating Wall Street Estimates

TLDR

• Nvidia reported Q3 revenue of $57.01 billion, beating Wall Street estimates of $54.92 billion, with earnings per share of $1.30 versus expected $1.25
• The company forecast Q4 sales of about $65 billion, exceeding analyst expectations of $61.66 billion
• Data center revenue reached $51.2 billion, driven by strong demand for Blackwell chips, which CEO Jensen Huang said are selling at levels “off the charts”
• Net income jumped 65% to $31.91 billion compared to the same period last year
• Bitcoin climbed back above $90,000 and AI-focused crypto tokens rose 4-5% following the earnings announcement

Nvidia reported third-quarter results after market close on Wednesday that topped Wall Street expectations. The chipmaker posted revenue of $57.01 billion, beating estimates of $54.92 billion.

Earnings per share came in at $1.30 adjusted. Analysts had expected $1.25.

The company’s net income rose 65% to $31.91 billion. That compares to $19.31 billion in the same quarter last year.

NVIDIA Corporation, NVDA

Shares rose more than 4% in extended trading following the announcement. The stock reaction helped push bitcoin back above $90,000 after it had fallen near $88,000 earlier in the day.

The company’s forecast for the current quarter came in stronger than expected. Nvidia expects about $65 billion in sales for Q4. Analysts had projected $61.66 billion.

Data center sales drove most of the growth. The segment brought in $51.2 billion, surpassing analyst expectations of $49.09 billion. That represents a 66% increase from the prior year.

Blackwell Chips Drive Revenue Growth

Compute revenue, which includes GPU sales, totaled $43 billion. Much of that growth came from initial sales of GB300 chips.

Gaming revenue reached $4.3 billion, up 30% year-over-year. Professional visualization sales hit $760 million, jumping 56% from last year. That segment includes the DGX Spark AI desktop computer announced earlier this year.

China Sales Face Headwinds

Automotive and robotics sales totaled $592 million, up 32% annually. The company highlighted robotics as a key growth area going forward.

Kress expressed disappointment about China shipments. The company cannot send current-generation Blackwell chips to China due to export restrictions. Sales of the H20 chip, which the company did receive export licenses for, only reached $50 million in the quarter.

These tech giants recently reported their quarterly results. Microsoft, Meta, Amazon, and Alphabet all increased their capital expenditure forecasts for AI infrastructure. The four companies now expect to spend more than $380 billion combined this year.

AI-focused crypto tokens responded positively to Nvidia’s results. Tokens rose 4-5% following the report. Bitcoin mining stocks that have pivoted to AI infrastructure also gained, with some names up 6-11% in after-hours trading.

The company returned $12.5 billion to shareholders through stock buybacks. It paid $243 million in dividends during the quarter.

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