NVIDIA reports stellar Q3 2024 results, with a 94% revenue surge to $35.08 billion and net income hitting $20.01 billion. Driven by a record $30.8 billion from its data centre segment, the company projects continued growth in Q4. Despite stock volatility, NVIDIA remains a leader in AI and graphics technology, navigating competitive pressures and global trade challenges.
NVIDIA Corporation, a global leader in artificial intelligence (AI) and graphics technology, has reported impressive financial results for the third quarter of fiscal year 2024. The company achieved net revenue of $35.082 billion, marking a 94% year-over-year increase, with net income reaching $20.010 billion. Earnings per share (EPS) were $0.81, a 103% growth compared to the same period in 2023.
These results surpassed market expectations, which had predicted revenue of $33.09 billion and EPS of $0.75. Despite this, investor reactions were mixed, leading to fluctuations in NVIDIA’s stock price.
Data centre revenue powers growth
The significant growth in NVIDIA’s revenue is attributed largely to its data centre segment, which generated a record $30.8 billion in revenue. This marks a 112% increase from the previous year and a 17% quarter-over-quarter growth.
NVIDIA’s success in the data centre market stems from its leadership in generative AI technologies and cloud computing infrastructure. Enterprises and service providers continue to invest in NVIDIA’s advanced systems, capitalising on the growing demand for AI-driven solutions.
Market reaction and stock performance
Despite surpassing expectations, NVIDIA’s stock price experienced volatility following the announcement. Shares declined by over 2.7% in after-hours trading, closing at approximately $143.00 per share. Analysts attributed this reaction to investor concerns over slowing growth projections in the coming quarters.
On November 21, 2024, the stock rebounded in pre-market trading, reaching $149.00 per share. However, a subsequent dip after the market opening brought shares down to $141.00.
Projections for Q4 2024
NVIDIA forecasts revenue of $37.5 billion for the fiscal fourth quarter, alongside EPS of $0.82. Gross margins are expected to remain robust at 73.5%, with operating expenses projected at $3.4 billion.
These figures align with market expectations and highlight NVIDIA’s disciplined financial planning and operational efficiency. However, the forecast also signals a more stable growth trajectory amidst a competitive and evolving landscape.
While NVIDIA retains its leading position in the AI chip sector, it faces increasing competition from rivals such as AMD and emerging startups offering innovative alternatives. Furthermore, trade restrictions between the United States and China could impact growth in a key market for the company.
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