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

Core Insights - Nvidia's stock declined by 3.15% despite reporting better-than-expected Q3 earnings and a strong outlook for Q4 [1] - The company projects Q4 revenue of $65 billion, exceeding Wall Street's expectation of $62 billion [2] - Nvidia's Q3 earnings per share (EPS) were $1.30 on revenue of $57.01 billion, surpassing analyst expectations [3] Financial Performance - For Q3, Nvidia reported EPS of $1.30 and revenue of $57.01 billion, compared to analyst expectations of EPS of $1.26 and revenue of $55.2 billion [3] - The data center business generated $51.2 billion in revenue, exceeding estimates of $49.3 billion, while gaming revenue was $4.3 billion, slightly below the $4.4 billion estimate [3] - Year-to-date, Nvidia's stock is up over 37% and 25% over the last 12 months [6] Market Dynamics - CEO Jensen Huang highlighted strong demand for Blackwell sales and noted that the AI ecosystem is rapidly expanding across various industries and countries [2] - CFO Colette Kress mentioned that the revenue from the China-specific H20 chip was "insignificant" [4] - Notable sell-offs occurred from Peter Thiel's hedge fund and SoftBank Group, which sold their stakes in Nvidia valued at approximately $100 million and $5.8 billion, respectively [5] Competitive Landscape - Advanced Micro Devices (AMD) CEO Lisa Su projected that the data center market could reach $1 trillion by 2030 [5] - Nvidia's market capitalization briefly surpassed $5 trillion last month, indicating significant investor interest [4] Investor Sentiment - Despite Nvidia's gains, investor Michael Burry expressed concerns about companies artificially inflating earnings by understating data center equipment depreciation [7]