Nvidia just announced impressive financial results for the third quarter of fiscal 2024, ending October 27, 2024, with revenue reaching $35.08 billion, exceeding the $33.16 billion forecast from analysts.
Net income was $19.3 billion, more than double the $9.24 billion in the same period a year ago. Earnings per share also rose to 78 cents from 67 cents. Nvidia’s gross margin was 73.5%, beating expectations thanks to strong sales of AI chips.
The data center division, which plays a core role in Nvidia's revenue, reached $30.8 billion, up 112% year over year, of which $3.1 billion came from networking sales.
Major customers like Microsoft, Oracle and OpenAI have started receiving Nvidia's new generation Blackwell AI chip.
The company has shipped more than 13,000 Blackwell chips and expects to generate “billions of dollars” in revenue from the chip line next quarter, according to CFO Colette Kress.
CEO Jensen Huang also emphasized that the Blackwell chip is now in mass production, helping partners deploy data centers more efficiently.
Nvidia forecast fourth-quarter revenue of $37.5 billion, up about 70% year over year. However, the company also warned that supply constraints for Blackwell and Hopper chips will continue, with demand expected to outpace supply through the entire 2026 fiscal year.
In addition to AI chips, Nvidia also recorded strong growth in other business segments. Gaming reached $3.28 billion, exceeding expectations of $3.03 billion, thanks to high demand for GPUs for PCs, laptops and chips for gaming systems such as Nintendo Switch.
Revenue from the automotive segment reached $449 million, up 72% thanks to sales of autonomous vehicle chips. Meanwhile, the visualization division, which specializes in professional graphics, reached $486 million, up 17% from last year.
Despite Nvidia's big wins, the company's shares fell 2% in after-hours trading on concerns about slowing revenue growth compared to previous quarters.
CEO Jensen Huang affirmed that Nvidia will comply with any regulations related to trade policy or tariffs that the US government may apply in the future.
Thanks to its leadership in AI chips and related products, Nvidia continues to solidify its position as the world's most valuable technology company, with its stock nearly tripling by 2024.
