- Sales up 94% to $35.1bn – consensus $33.2bn
- Underlying earnings per share up 100% to $0.81 – consensus $0.75
- Mid-point of Q4 guidance $37.5bn – consensus $37.1bn
Derren Nathan, head of equity research, Hargreaves Lansdown:
“Nvidia has once again breezed past expectations and set the scene for a blockbuster finish to the year. Data Center took the lion’s share of the glory, growing revenue 112% to $30.8bn. And the base of that demand is growing beyond the AWS’s and Azures of this world, with customers of note including Softbank, who are set to become an early adopter of next-generation Blackwell chips and the Danish government. It’s also helping to underpin AI infrastructure with local cloud providers across India, Japan and Indonesia.
Today’s results reinforce the view that NVIDIA is a once in a generation company shaping the next industrial revolution. Participants across multiple industries are changing how they work, with everything from automated diagnostic tools, robotic customer service agents, and analytical models for driving down organisations’ carbon footprints. For the full benefits to be felt, the world also needs to change the way it computes. NVIDIA’s ultra-powerful GPU chips are at the forefront of this step change, and its Cuda software is the glue that enables customers to process terabytes of data at breakneck speeds and accelerate the pace at which generative AI models are being trained.
There’s no doubting the importance the world’s most valuable company holds for stock market returns, and the small dip in the after-market share price suggests even outstanding isn’t enough for some investors. Once the dust settles and markets open tomorrow, a bounce back in the shares would be more than justified.
Lower gross margin guidance for the final quarter may be one nit to pick. But many companies would chew their arm off for a mark up of over 70%, and that threshold doesn’t seem to be in danger any time soon. NVIDIA’s generated stellar gains for shareholders over many years now, and right now it’s pretty hard to see any major holes in the investment case.”
