Nvidia Q3 Earnings Beat on AI Chip Demand

Nvidia reported stronger-than-expected fiscal third-quarter earnings on Wednesday after the U.S. market close, driven by surging demand for its artificial intelligence chips, which sent its shares climbing more than 4 percent in after-hours trading.

The company posted revenue of $57 billion, surpassing Wall Street estimates of around $55 billion, while adjusted earnings per share came in at $1.30, topping forecasts of about $1.25. The data center segment, which powers AI infrastructure, generated $51.2 billion in sales, a 66 percent increase from the previous year and ahead of projections near $49 billion. Gross margins held steady at approximately 73 percent, with Nvidia anticipating an expansion to 75 percent in the fourth quarter.

For the fiscal fourth quarter, Nvidia guided revenue to $65 billion, plus or minus 2 percent, exceeding analyst expectations of roughly $62 billion. Chief Executive Officer Jensen Huang highlighted the robustness of demand during the earnings call, stating, "Blackwell sales are off the charts, and cloud GPUs are sold out." He added, "Compute demand keeps accelerating and compounding across training and inference each growing exponentially. We've...