2024-11-20 21:56:00
Net profit stood at $19.3 billion, according to a company press release published Wednesday, a figure more than doubled over one year (+109%).
The American semiconductor champion Nvidia has once again largely exceeded expectations for its delayed third quarter and says it anticipates continued sustained growth for the last three months of the financial year.
Net profit stood at $19.3 billion, according to a company press release published Wednesday, a figure more than doubled over one year (+109%) and well above the $17.4 billion projected by analysts. according to a consensus established by FactSet. These results were eagerly awaited by Wall Street, because the Californian group is considered the standard-bearer of the generative artificial intelligence (AI) revolution.
Nvidia is, in fact, by far the largest producer of so-called GPU (graphics processing unit) chips, also called graphics cards, which are considered essential to the development of generative AI. “The AI era is in full swing, driving a global movement toward Nvidia products”commented general manager Jensen Huang, quoted in the press release. “The demand is incredible for the Hopper and the wait for the Blackwell, whose production is at cruising speed”he added. “AI is transforming all industries, societies and countries.”
“The most powerful chip in the world”
The Hopper is a family of microprocessors that includes the H100, the firm’s flagship product, by far the most popular in the sector and worth several tens of thousands of dollars each. In mid-March, Nvidia presented the Blackwell, a family of GPUs that are successors to the H100. “The most powerful chip in the world”according to the company, should be marketed in the coming months.
Turnover for this delayed quarter, completed at the end of October, reached $35.1 billion, up 94% year-on-year. For the last quarter of its financial year, Nvidia expects revenues to increase by 70%. Despite this pace of progress, the publication of the Santa Clara (California) company was received with reservation. The title lost 1.71% in electronic trading after the close on Wall Street.
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What factors contributed to Nvidia’s significant net profit increase in Q3, and how does this reflect the demand for AI technologies in the market?
**Interview with Dr. Jane Smith, Technology Analyst, on Nvidia’s Q3 Earnings Report**
**Interviewer:** Thank you for joining us today, Dr. Smith. Nvidia has just reported a staggering net profit of $19.3 billion for their third quarter, more than double compared to last year. What are your initial thoughts on these results?
**Dr. Smith:** Thank you for having me! It’s indeed impressive. Nvidia is not only surpassing expectations but is also showcasing the enormous demand for their products, especially in the realm of AI and graphics processing. This 109% surge in net profit demonstrates their dominant position in the semiconductor industry.
**Interviewer:** Analysts had predicted a net profit of $17.4 billion. How significant is it that Nvidia exceeded this expectation by such a margin?
**Dr. Smith:** Exceeding analyst expectations by such a significant amount—almost $2 billion—is indicative of Nvidia’s strength and the market’s favorable view on AI technologies. This is a clear signal to investors that Nvidia is not just riding the current AI wave but is a pivotal player in driving it. Wall Street was eagerly awaiting these results in light of Nvidia’s leadership in generative AI technology.
**Interviewer:** Looking forward, Nvidia anticipates continued growth for the last quarter of the financial year. What factors do you think are driving this optimism?
**Dr. Smith:** Several factors are at play. Nvidia’s GPUs are essential for AI training and deployment, which is a major growth area. Furthermore, their innovation pipeline continues to introduce advanced technologies that keep them ahead of competitors. The increase in adoption of AI in various industries is also propelling demand for their products.
**Interviewer:** Given that Nvidia is the largest producer of GPU chips, how do you foresee this impacting the broader technology market?
**Dr. Smith:** Nvidia’s performance is likely to have a ripple effect throughout the tech sector. As their capabilities expand, other companies will depend on their chips for AI solutions, elevating Nvidia’s role as a critical supplier. This could lead to a consolidation of technology around Nvidia’s products, reinforcing their market position.
**Interviewer:** Thank you, Dr. Smith, for your insights into Nvidia’s impressive earnings and what they mean for the industry moving forward.
**Dr. Smith:** My pleasure! It will be fascinating to see how Nvidia continues to evolve and how they influence the broader tech landscape in the coming months.
