Nvidia stock soars after Q3 earnings, forecasts top estimates with sales for AI chips 'off the charts'

Core Insights - Nvidia's stock surged after reporting Q3 earnings that exceeded analysts' expectations, with a projected revenue of $65 billion for Q4, surpassing Wall Street's forecast of $62 billion [1][4] Financial Performance - For Q3, Nvidia reported earnings per share (EPS) of $1.30 on revenue of $57.01 billion, beating the anticipated EPS of $1.26 and revenue of $55.2 billion [4] - The data center business generated $51.2 billion, exceeding estimates of $49.3 billion, while gaming revenue was $4.3 billion, slightly below the $4.4 billion estimate [4] Market Impact - Nvidia's positive earnings report led to a rise in stock prices for other AI companies, including AMD (up over 4%) and Micron (up more than 2%) [3] - Major tech companies like Amazon, Google, Meta, and Microsoft also experienced small gains following Nvidia's announcement [3] Strategic Insights - Nvidia's CEO highlighted the rapid scaling of the AI ecosystem, indicating a broadening of AI applications across various industries and countries [2] - The CFO noted that the Blackwell Ultra architecture is now the leading architecture across all customer categories, while demand for the previous Blackwell architecture remains strong [5] Market Movements - Nvidia's stock has increased by over 37% year-to-date and 25% over the last 12 months, while AMD's stock has risen 82% year-to-date and 58% over the last 12 months [7] Investor Actions - Ahead of the earnings announcement, Peter Thiel's hedge fund sold its entire $100 million stake in Nvidia, and SoftBank Group divested its $5.8 billion stake to fund its own AI investments [6]