Nvidia’s sales surge driven by AI demand

Nvidia beat analyst expectations and reported a 94% revenue growth. The company’s fiscal third quarter saw $35.1 billion in sales, with profits nearly doubling to $19.3 billion. The growth highlights the strength of the AI boom, which has made Nvidia the world’s most valuable company, a title it reclaimed earlier this month.

The chipmaker is projecting $37.5 billion in revenue for the current quarter, driven by high demand for its next-gen Blackwell AI chips, which are expected to be in short supply into the next fiscal year.

Despite the strong numbers, Nvidia’s stock fell 2.5% in after-hours trading, with some investors concerned about potential growth slowdowns. 

Nvidia, led by CEO Jensen Huang, has seen its market cap increase by $2.36 trillion in 2024 alone. 

While demand for its AI chips remains high, competition from rivals like AMD can impact future performance. Two of Nvidia’s biggest customers, Amazon and Google, are also developing their own AI chips, which can further affect the business. 

Additionally, Nvidia faces risks under the incoming Trump administration. President-elect Donald Trump has proposed imposing tariffs on foreign products, which could affect Nvidia’s ability to ship chips into the US from overseas facilities.

His stance on China may also intensify the regulatory pressure Nvidia faces regarding AI chip exports to the country.

The company was founded in 1993. In the past two years, it has reached the top of the semiconductor industry. Nvidia hit a $2 trillion valuation earlier this year and crossed the $3 trillion mark in June.

With growth comes scrutiny
Antitrust regulators in the US and Europe are closely monitoring the company’s business due to its market dominance. It currently commands over 80% of the market, according to analysts.