Nvidia's recent earnings report showcased a robust demand for its AI chips, with third-quarter revenues soaring to $35.08 billion, a 93.6% increase year-over-year. The company's net profit also surged by 109%, reaching $19.31 billion. Despite these impressive results, Nvidia's stock fell approximately 3% in extended trading on November 20, 2024, primarily due to projections of weak gross margins for the fourth quarter. CEO Jensen Huang emphasized the critical role of AI across various industries, indicating that the demand for AI technologies remains strong. [696d7556]
Looking ahead, Nvidia has forecasted fourth-quarter revenue to be around $37.5 billion, but gross margins are expected to dip to 73%. This outlook has raised concerns among investors, leading to a decline in stock price, despite the company announcing a quarterly dividend of $0.01 per share, scheduled for payment on December 27, 2024. [696d7556]
In addition to these developments, Nvidia's adjusted earnings for Q3 were reported at 81 cents per share, surpassing estimates of 75 cents. The company’s data center revenue soared to $30.77 billion, reflecting a remarkable 112% year-over-year increase, driven largely by the demand for AI technologies. CEO Huang reassured investors that there are no significant issues with the new Blackwell chips, despite some reports of overheating. [9e9ab6a8]
Nvidia's stock has nearly quadrupled this year and has increased over ninefold in the past two years, highlighting significant investor interest in the company. However, the recent fluctuations in stock price have raised questions about the sustainability of this growth trajectory. The company is also navigating broader market dynamics, including the performance of other tech giants like Tesla, which recently reported a 21% surge in its shares following strong Q3 earnings. [69f6de0d] [5606e648]
Furthermore, Nvidia's partnership with Mukesh Ambani to expand AI initiatives in India underscores the growing global importance of AI technology. Other notable corporate news includes Richard White resigning as CEO of WiseTech amid scandals and General Catalyst raising $12 billion, marking the largest venture capital raise in the U.S. in years. Meanwhile, Boeing's machinist union has rejected a contract offer, extending ongoing strike actions, and Barclays reported a 23% rise in Q3 profits, illustrating the dynamic landscape of corporate earnings this quarter. [69f6de0d] [e5a65401]