Nvidia Beats Estimates, Stock Rises

Nvidia reported fiscal third-quarter earnings and revenue that topped Wall Street expectations on Wednesday and provided stronger-than-expected sales guidance for the fourth quarter.

Shares of the AI chipmaker rose more than 4% in extended trading.

Here’s how the company did, compared with estimates from analysts polled by LSEG:

• Earnings per share: $1.30 adjusted vs. $1.25 estimated
• Revenue: $57.01 billion vs. $54.92 billion estimated

Nvidia said it expects about $65 billion in sales in the current quarter, versus $61.66 billion expected by analysts.

The company said net income in the quarter rose 65% to $31.91 billion, or $1.30 per share, from $19.31 billion, or 78 cents per share, in the year-ago period.

Nvidia’s most important business is data center sales. Nvidia said it had $51.2 billion in data center sales, easily surpassing analyst expectations for $49.09 billion in sales during the quarter, a 66% rise on a year-over-year basis.

Of that, $43 billion in revenue was for “compute,” or the company’s GPUs. The company said that much of the growth was driven by initial sales of the company’s GB300 chips. Networking, or parts that allow scores of GPUs to work as one computer, accounted for $8.2 billion in data center sales.

Nvidia finance chief Colette Kress said in a statement that the company’s best-selling chip family is now Blackwell Ultra, the second-generation version of the company’s Blackwell chips.

Nvidia said that it was “disappointed” that it cannot ship current-generation Blackwell chips to China. Although the company got export licenses for the H20 chip, Kress said that it only had $50 million of sales during the quarter.

“Sizable purchase orders never materialized in the quarter due to geopolitical issues and the increasingly competitive market in China,” Kress said.