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Nvidia's revenue more than doubled last quarter, beating consensus estimates as the US chipmaker's phenomenal growth continued.
Revenue for the three months ending in July was $30 billion, up 122% from a year ago. Analysts had expected $28.7 billion. Nvidia now expects current-quarter revenue of $32.5 billion, up +/- 2%, in line with the median of analysts' consensus estimates.
Some investors had been hoping for even stronger earnings guidance ahead of Wednesday's earnings report.Despite the strong results, shares fell about 3% in after-hours trading immediately after the earnings release.
Nvidia also authorized an additional $50 billion in share buybacks.
Investors are closely watching the highly anticipated earnings report for signs of progress in the artificial intelligence boom sweeping the tech world.
The year-over-year growth rate was a new record for NVIDIA, but fell far short of the 262% revenue growth it reported last quarter. Earnings per share came in at 68 cents, beating the 65 cents expected. Gross margin was 75.1%, beating analyst expectations of 75.5%.
Nvidia has become outsizedly important in the U.S. stock market, with its stock price up about 160% this year and its market capitalization reaching $3 trillion. The company's growth has driven more than a quarter of the S&P 500's gains so far this year.
Investors are bracing for volatility around earnings, with options markets earlier this week pricing in a 10 percent swing in stock prices either up or down.
The latest quarterly earnings from Google, Microsoft, Meta and Amazon show how much big tech companies are spending on building infrastructure to train and run AI models. These companies are also Nvidia's largest customers, and the reports were expected to gauge the broader mood around AI.
One potential roadblock to Nvidia's growth has emerged: the delay in the launch of its next-generation chip, called Blackwell, which Chief Executive Jensen Huang previously said would generate “significant” revenue for the company.
Demand for the current generation of Hopper Chips “remains strong,” Huang said in a statement on Wednesday.
In prepared remarks, NVIDIA Chief Financial Officer Colette Kress said the company has modified Blackwell's production methods to improve manufacturing yields, adding, “The Blackwell ramp will begin in the fourth quarter and continue through fiscal 2026. We expect Blackwell sales to reach several billion dollars in the fourth quarter.”
