Earnings per share—a key financial metric to determine how much profit a company generates for each share of its stock—came in at $1.30 versus the Wall Street forecast of $1.25.
Data center sales accounted for the largest share of the company’s revenues. Nvidia said it posted a better-than-expected $51.2 billion in data sales—a 66 percent year-over-year increase.
In addition, $43 billion of this revenue was for the tech titan’s graphics processing units (GPUs), specialized chips for training AI models and handling large-scale computations.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” said Jensen Huang, co-founder and CEO of Nvidia, in the earnings report.
“Compute demand keeps accelerating and compounding across training and inference—each growing exponentially. We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast—with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”
Nvidia said it anticipates $65 billion in sales for the current quarter, above analysts’ estimate of $61.66 billion.
Shares of Nvidia climbed almost 4 percent after the closing bell. They also finished the Nov. 19 session up nearly 3 percent, to around $185.
The stock has rallied almost 34 percent year to date.
Reaffirming the AI Boom
Heading into Nvidia’s earnings report, market analysts said results should reaffirm the demand environment for AI infrastructure, even as investor enthusiasm might be waning.But Nvidia and others still have plenty of room for growth, says John Belton, portfolio manager at Gabelli Funds.
“We think there is still runway for these companies to generate strong earnings growth over the coming years as AI adoption scales and use cases proliferate,” Belton said in a note emailed to The Epoch Times. “Nvidia is the dominant player in AI semiconductors with a strong competitive position which looks defensible.”
The selloff earlier this week sparked concerns that investors are becoming pessimistic about elevated valuations among the plethora of AI and tech juggernauts.
Market watchers have been debating whether there is an AI bubble, similar to the dot-com boom of the late 1990s and early 2000s.
Despite deal-making persisting across the AI market, traders could be feeling some fatigue. Investors dismissed the announcement that Nvidia will invest $10 billion into AI company Anthropic.
“Market psychology has been negative this month as investors worried that the artificial intelligence infrastructure build out was a bubble, and in a few years we may look back at this time and point to signs that it was,” Zaccarelli said. “But in the meantime, the largest technology companies in the world are extremely profitable, and they are reinvesting billions of dollars into data centers, servers, and chips—and the spending is real.”
Nvidia has been at the center of the AI boom for nearly three years, with the chipmaker playing a significant role in the new technology’s infrastructure buildout. Over the last several months, scores of companies have committed billions of dollars to advancing their operations or building data centers powered by Nvidia’s technology.
While Belton is not too concerned, he does, however, believe there is an argument to be had that the financial markets are facing a “valuation bubble.”
“While concentration in U.S. equity markets has increased due to strong performance of many large tech stocks, valuations for these stocks appear reasonable,” he added.