Nvidia founder and CEO Jensen Huang struck a bullish tone in the company's third-quarter earnings. And based on the company's results, there may be a reason to.
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Nvidia forecast fourth-quarter revenue above Wall Street estimates on Wednesday, betting on booming demand for its AI chips from cloud providers against the backdrop of widespread concerns of an artificial intelligence bubble.
Analysts and investors widely expected the underlying demand for Jensen Huang's AI chips, which has powered Nvidia results since ChatGPT's launch in late 2022, to remain strong.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) reported third-quarter revenue that exceeded expectations, supported by increased demand for its AI-focused data center products. The chipmaker posted revenue of $57.01 billion for its fiscal third quarter, surpassing Wall Street expectations of $55.19 billion and marking a 62% increase from a year earlier.
Nvidia earnings have cast a light on defensive areas, inducing a sector rotation that may accelerate in the short term. Looking beyond NVDA earnings, an economic environment characterized by slowing growth, persistent inflation, and tariff uncertainty is compelling investors to look beyond overbought tech. This shift favors sectors that offer resilience, stable cash flow, and intrinsic value over speculative future growth.
Nvidia and xAI said that a large data center facility being built in Saudi Arabia and equipped with hundreds of thousands of Nvidia chips will count Elon Musk's xAI as its first customer. Musk and Nvidia CEO Jensen Huang were in attendance at the U.S.-Saudi Investment Forum in Washington, D.C.
Lo Toney, Plexo Capital, and Jay Goldberg, Seaport Global Securities, join 'The Exchange' to discuss what can happen to keep Nvidia's train rolling, Goldberg's 'sell' rating on Nvidia and much more.
Nvidia shares are showing signs of life on a critical day for financial markets.
NVIDIA's release will wrap up the reporting cycle for the broader Mag 7 group, which overall delivered a strong performance in the Q3 cycle.
Nvidia's quarterly results are almost here, and anxiety is running high.
Just today, analysts at William Blair reiterated an outperform rating on Nvidia saying the tech giant is too attractive to ignore ahead of earnings.