Artificial Intelligence remains king on Wall Street. This is demonstrated by the results of Nvidia which has achieved full revenues and profits, again. Third quarter of 2024 closed beyond expectations with doubled profits and a 94% increase in turnover.
Nvidia continues to ride the wave of artificial intelligence. Revenues for the third quarter of the year thus rose to 35.1 billion dollars (+94% compared to the same period of 2023) and net profit more than doubled to 19.3 billion dollars. Numbers that far exceed analysts’ forecasts, which estimated a turnover of 33.1 billion and a profit of 17.4 billion.
However, despite these achievements, shares of the Californian semiconductor giant suffered a decline in after-market trading, losing around 2%. A reaction attributable to forecasts for the fourth quarter, considered below the most optimistic expectations. Nvidia estimated revenues of $37.5 billion, with a margin of variation of 2%, marking an increase of 70% on an annual basis. While impressive, this is a slowdown from previous quarters, in which revenue growth exceeded 200%.
Nvidia dominates 80% of the market for AI chips, used in critical applications such as ChatGPT and generative intelligence systems. Among key segments, data centers continue to lead growth, with revenue of $30.8 billion (+112% year-over-year). Other sectors, such as gaming and automotive, contribute 3.28 billion and 449 million respectively.
Despite the more than 200% rally in Nvidia stock since the start of 2024, the market remains cautious. High investor expectations and increased competition from giants like Google and Amazon, which develop proprietary chips to reduce dependence on Nvidia, contribute to a climate of uncertainty. The release of Nvidia’s financial results coincided with the European Central Bank warning about the risk of an AI-driven tech bubble. According to the report, stock markets, especially in the United States, are overly dependent on a small group of technology companies, with Nvidia leading the way.
