Company looks to robotics as future growth market
Trade
Jensen Huang, Nvidia
Nvidia surpassed Wall Street’s profit and revenue expectations when it released its third-quarter report, sending its share price soaring. The company’s strong performance was driven by overwhelming demand for its artificial intelligence (AI) chips, which are crucial components in developing new AI models across various industries.
Nvidia’s net profit rose sharply year-on-year to $31.91 billion (about €27.7 billion). This growth was mainly attributed to the company’s data centre segment, with revenue up 66% compared to the same period last year.
Jensen Huang, CEO of Nvidia, said the company is seeing significant demand for its AI chips, addressing concerns over a possible AI bubble. He highlighted strong sales of the GB300 chip and noted that Nvidia’s best-selling chip family is now the Blackwell Ultra, a second-generation version of its Blackwell chips.
The company’s financial results are in line with recent reports from other tech giants such as Microsoft, Meta, Amazon, and Alphabet, all of which have increased their capital expenditure forecasts amid ongoing investments in AI.
Nvidia also reported strong performance in its gaming and professional visualisation arms. Gaming sales rose 30% year-on-year, while professional visualisation sales jumped 56%, thanks to the success of the DGX Spark AI desktop.
Looking ahead, Nvidia forecasts revenue of about $65 billion (approximately €56.4 billion) for the current quarter, exceeding analysts’ expectations. The company continues to invest in robotics as a key growth area, reporting a year-on-year increase of 32% in automotive and robotics sales.
While Nvidia has expressed disappointment at being limited in shipping current-generation Blackwell chips to China due to geopolitical factors and rising competition, it remains optimistic about future growth prospects. The company’s strong financial position is further underscored by its share buybacks and dividend payouts during the quarter.
Business AM