Artificial intelligence chipmaker Nvidia reported another blockbuster quarter on Wednesday, delivering results that once again beat Wall Street expectations. The strong performance comes at a time when investors are debating whether the AI boom is sustainable or overheated.
For the November–January period, Nvidia’s revenue rose 73% from a year earlier to $68.1 billion. Profit nearly doubled to around $43 billion, or $1.76 per share. The results exceeded analyst projections, continuing a trend that began three years ago when Nvidia’s high-end chips became central to the AI industry.
As reported by Associated Press, “No quarter has had more riding on it than this one,” said Jake Behan, head of capital markets for the investment firm Direxion. “The AI trade needed some positive news and Nvidia’s earnings report brought plenty of it.”
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CEO says AI demand is still 'skyrocketing'
The Santa Clara, California-based company also issued a revenue forecast for the February–April period that topped analyst expectations. If Nvidia meets its target, revenue would rise 77% from last year, showing that its rapid growth is still accelerating.
CEO Jensen Huang said demand for Nvidia’s chips remains “skyrocketing.” He added, “AI is here, AI is not going to go back. AI is only going to only get better from here.”
Despite the strong numbers, some investors remain cautious. Nvidia’s market value has surged from $400 billion at the end of 2022 to nearly $4.8 trillion. After initially rising 4% in extended trading following the earnings release, the stock later slipped slightly after Huang’s conference call.
Even in previous quarters, Nvidia’s stock has sometimes fallen despite strong results. After its last earnings report exceeded expectations, shares dropped 3% the next day.
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Meanwhile, major tech companies- Amazon, Microsoft, Google parent Alphabet and Facebook parent Meta Platforms have committed to spending about $650 billion this year to expand AI infrastructure. Much of that spending is expected to go toward Nvidia chips. The company’s annual revenue has jumped from $27 billion to $216 billion in three years, and analysts expect it to exceed $330 billion next fiscal year.
“We want to take the great opportunity that we have as we’re in the beginning of this new computing era, this new computing platform shift, to put everybody on Nvidia,” Huang said.
