nvidia, the largest company in the world with one 3.5 trillion dollars market capitalization, reported its third-quarter earnings on Wednesday after the market closed.
Lukman Otunugasaid senior market analyst at online trading broker FXTM entrepreneur before the earnings release that “with Nvidia's stunning performance in 2024, expectations are very high.”
“Gains could either push the stock to all-time highs or pull it below key support levels, depending on the common directions,” Otunuga noted in an emailed statement.
Related: Why A Prominent Investor, “Britain's Warren Buffett,” Is Staying Away From Nvidia Stock
Nvidia's overall revenue was $35.1 billion, above estimates of $33.2 billion, and the AI chipmaker's data center revenue was $30.8 billion, also above the $29.1 billion expected.
Melissa Otto, head of technology, media and telecommunications research at S&P Global Visible Alpha, told Bloomberg before earnings the number for Nvidia to “meet or beat” was $29 billion for data center revenue; Nvidia beat the forecast on Wednesday.
Nvidia announced that it will begin shipping its new Blackwell AI chip in the fourth quarter, and that demand is expected to outstrip supply for several quarters. The company forecast its revenue for the fourth quarter at $37.5 billion.
Bloomberg data It provides a near $300 billion swing in Nvidia's market value on Thursday, or an 8% move in either direction.
Related: Here's why Nvidia just broke another record
The critical issue for Nvidia is its new Blackwell chip, which CEO Jensen Huang said he encountered “crazy request.”
Although the chip has recently faced reports of overheatingOtto states that Blackwell is expected to bring in $63 billion in revenue for the company next year, a 10% increase from forecasts given just last week.
“It's clear that sentiment is improving around Blackwell,” Otto said.