Nvidia makes almost $20 billion in profits

The US chip manufacturer Nvidia exceeded expectations: in the third quarter it recorded a net profit of 19.3 billion dollars – more than twice as much as in the same quarter of the previous year (plus 109 percent) and above the forecast 17.4 billion dollars.

The California-based company also reported third-quarter revenue of $35.1 billion, up 94 percent year-over-year. Despite these figures, the share price fell by 1.71 percentage points in after-hours trading on Wall Street.

Nvidia’s sales of data center technology shot up 112 percent year-on-year to $30.8 billion. This was above analysts’ expectations. For the current quarter, Nvidia predicted sales of $37.5 billion – with the caveat that it could be two percent higher or lower. This was roughly in line with market expectations.

Key technology for artificial intelligence

The results were eagerly awaited by Wall Street, as the group is now considered the flagship for the AI ​​industry. The company’s powerful semiconductors can be used in the numerous new applications of artificial intelligence (AI) that require massive computing power. The heavyweights Microsoft, Google, Meta, Tesla and Amazon, among others, rely on Nvidia technology for their AI models. This key position allows Nvidia’s business to continue to grow.

“The age of AI is in full swing and is leading to a global movement towards Nvidia products,” explained CEO Jensen Huang.

New chip soon on the market

The Hopper is a family of microprocessors that also includes the H100, the company’s flagship product. These cost tens of thousands of dollars each. There are also high expectations for its successor Blackwell, whose production is in full swing, explained Huang. According to Nvidia, the “most powerful chip in the world” is expected to come onto the market in the next few months. At the same time, the group stated that demand for both Blackwell processors and the current Hopper generation will continue to exceed supply for several quarters.

At the beginning of November, Nvidia once again became the most valuable company in the world. Its market capitalization is currently $3.61 trillion. The previous number one, Apple, is currently trading at $3.45 trillion. (sda/afp/dpa)

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