Nvidia Earnings Live: AI Chip Giant's Results Blow Past Wall Street Expectations, Sending Stock Sharply Higher; CEO Huang Cites "Off the Charts" Sales

Core Insights - Nvidia's earnings report exceeded Wall Street expectations, with adjusted earnings of $1.30 per share and revenue of $57 billion, a 62% increase year-over-year, surpassing the expected $55.4 billion [2][31] - The company forecasts fourth-quarter revenue of $65 billion, above analysts' consensus of $62.38 billion [28][29] - CEO Jensen Huang emphasized the rapid scaling of the AI ecosystem, stating that sales of the AI Blackwell platform are "off the charts" [2][27] Financial Performance - Nvidia's data center revenue reached a record $51.2 billion, up 66% year-over-year, driven by increased spending from major clients like Meta, Amazon, Microsoft, and Alphabet [21][32] - Gaming revenue was reported at $4.27 billion, reflecting a 30% year-over-year increase but a slight decline of 1% sequentially [21] - Gross margins for the third quarter were reported at 73.4%, an increase from 72.4% in the previous quarter but a decrease from 74.6% a year earlier [30] Market Reaction - Nvidia shares rose 5% in after-hours trading following the earnings report, recovering from a 12% decline since late October [4][2] - The positive earnings report is expected to boost broader market sentiment, as Nvidia has significant weight in major stock indexes [3][4] - Other chip stocks, including AMD and Broadcom, also saw gains in after-hours trading due to investor optimism surrounding Nvidia's results [7][8] Strategic Insights - CFO Colette Kress indicated that Nvidia could exceed its revenue goals for the Blackwell and Rubin platforms, with a potential for more than $500 billion in combined revenue through 2026 [9][10] - Huang dismissed concerns about "circular" deals with customers, asserting that these investments enhance Nvidia's influence and will yield future returns [5][6] - The company is actively working to address sales restrictions in China, viewing access to this market as crucial for maintaining competitive advantage in AI [18][19] Industry Outlook - Executives believe the AI sector is still in the early stages of adoption, with significant growth potential as AI technologies spread across various industries [11][12] - Nvidia is positioned as a key player in the anticipated $3-4 trillion annual AI infrastructure market by the end of the decade [12] - Huang described the current state of the AI ecosystem as rapidly expanding, with increasing numbers of startups and foundation model creators [27][28]