Chipmaker posts another blowout quarter with data center revenue surging 66% year over year
Nvidia (NVDA) delivered yet another blockbuster quarter on Wednesday, beating Wall Street expectations across the board and offering stronger-than-anticipated guidance for the current period — a clear signal that the global AI boom remains in full force. Shares rose as much as 3% in after-hours trading following the announcement.
For its fiscal third quarter, Nvidia posted adjusted earnings of $1.30 per share, ahead of the $1.25 analysts expected, according to LSEG. Revenue also came in above forecasts at $57.01 billion, versus the $54.92 billion projected by analysts.
The company’s bottom line was equally striking: net income soared 65% year over year to $31.91 billion, or $1.30 per diluted share, up from $19.31 billion a year ago.
But the biggest highlight came from the company’s forward-looking guidance. Nvidia expects approximately $65 billion in sales for the current quarter — far above the $61.66 billion analysts anticipated — signaling confidence that demand for its industry-leading GPUs will continue at a torrid pace.
Nvidia’s rise to the world’s most valuable company has been fueled almost entirely by explosive demand for its AI chips, used by virtually every major technology giant including Microsoft, Amazon, Google, Meta, and Oracle. These chips form the backbone of the generative AI revolution, powering the massive data centers used to train and deploy advanced AI models.
Unsurprisingly, Nvidia’s data center business was once again the star of the quarter. Revenue in the segment jumped to $51.2 billion, crushing expectations of $49.09 billion and marking a 66% year-over-year increase. Of that, $43 billion came from compute GPUs, while $8.2 billion was generated by networking equipment — the infrastructure that enables thousands of chips to function as a unified supercomputer.
As Nvidia continues to dominate the rapidly expanding AI hardware landscape, Wednesday’s results further cement its position at the center of the global AI arms race.
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