Chipmaker Nvidia beat Wall Street expectations with its earnings and revenue for the third quarter of fiscal 2024 on the back of growing demand for the company’s powerful artificial intelligence chips.
Nvidia’s revenue for Q3 came at $35.08 billion compared to $33.16 billion expected by analysts, while adjusted earnings per share of $0.81 surpassed the estimates of $0.75 per share. The company’s sales increased by 94% on a year-over-year basis, although it was still a smaller leap compared to the previous three quarters.
The company now forecasts revenue of $37.5 billion for the current quarter, while analysts estimate $37.09 billion.
Nvidia expects to see further growth as the adoption of AI technology expands. The company already anticipates that the demand for its new AI chip, known as Blackwell, will continue surpassing supply well into 2026.
“AI is transforming every industry, company, and country. Enterprises are adopting agentic AI to revolutionize workflows,” CEO Jensen Huang said. “Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure.”
Despite the resounding beat, Nvidia’s shares still slipped more than 3% at one point in the after-hours market. The dip was likely a result of investors having loftier expectations and being taken aback by predicted slower growth in sales for the current quarter. The company’s stock previously closed at $145.89 per share, being 202.86% up year-to-date.