Nvidia stock wavers 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 estimate of $62 billion [1][3] 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 [3] - 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 [3] Market Dynamics - Nvidia's CEO highlighted the rapid scaling of the AI ecosystem, indicating a broad adoption of AI across various industries and countries [2] - The company's market capitalization briefly surpassed $5 trillion last month, reflecting strong investor confidence [4] Competitive Landscape - Peter Thiel's hedge fund and SoftBank Group sold their stakes in Nvidia, valued at approximately $100 million and $5.8 billion respectively, as they pursue their own AI investments [5] - AMD's CEO projected the data center market could reach $1 trillion by 2030, indicating significant growth potential in the sector [5] Stock Performance - Nvidia's stock has increased over 37% year-to-date and 25% over the past 12 months, while AMD's shares have risen 82% year-to-date [6]