Jerry Jackson Nvidia, the $3.5 trillion tech giant, has once again exceeded market expectations with its third-quarter earnings report. The company posted $35.1 billion in revenue, far surpassing analysts’ projections of $33.2 billion. The standout performer was its data center segment, which brought in $30.8 billion—well above the anticipated $29.1 billion.
Analysts Praise Nvidia’s Stellar Year
2024 has been a landmark year for Nvidia, drawing widespread acclaim from market analysts. Lukman Otunuga, a senior market analyst at FXTM, described the year as “jaw-dropping,” noting that the company’s earnings guidance will determine whether its stock sets new records or retreats below key support thresholds.
Blackwell AI Chip Drives Optimism
At the center of Nvidia’s impressive growth lies its highly anticipated Blackwell AI chip, set to begin shipping in the fourth quarter. Demand for the chip has surged, with CEO Jensen Huang admitting that supply may lag behind demand for several quarters.
Despite isolated reports of overheating, market sentiment about Blackwell remains overwhelmingly positive. Melissa Otto, head of technology research at S&P Global Visible Alpha, projected the chip could deliver $63 billion in revenue next year, a 10% increase over earlier estimates. Otto emphasized that growing confidence in Blackwell underscores its critical role in Nvidia’s growth strategy.
Strong Outlook Fuels Investor Confidence
Nvidia has forecasted an extraordinary $37.5 billion in revenue for the fourth quarter, reinforcing its upward momentum. Analysts predict the company’s market value could experience a significant $300 billion shift—an 8% swing in either direction—based on stock performance following this strong guidance.
A Technology Sector Leader
With its dominance in AI and cutting-edge chip innovation, Nvidia continues to solidify its leadership in the tech industry. The Blackwell chip and robust financial forecasts signal sustained growth, keeping Nvidia at the forefront of technological advancement and market performance.