US chip giant Nvidia achieved better-than-expected results for its third fiscal quarter, driven by surging demand for its products, CEO Jensen Huang announced on Wednesday.
Net profit for the quarter ending in late October jumped 65% year-on-year to $31.9 billion, according to a company statement.
The results were well-received on Wall Street, with Nvidia’s stock rising nearly 4% in after-hours trading.
Turnover surged by 62% compared to the same period last year, reaching $57.0 billion.
Once relatively unknown to the public, Nvidia has become a key player in the rise of generative artificial intelligence (AI), with its graphics processing units (GPUs) regarded as essential for advancing the technology.
Amid heightened concerns of a potential AI bubble, investors were paying close attention to statements from CEO Jensen Huang.
Huang highlighted exceptional sales of Nvidia’s Blackwell chip, its most advanced processor for AI and cloud computing applications, describing demand as “off the charts.”
He also confirmed that all GPUs intended for cloud services had already sold out.
“The demand for computing capacity continues to accelerate,” he said. “AI is spreading everywhere and can do everything.”
Nvidia expects its momentum to continue, projecting turnover growth of 65% for the current quarter, significantly outpacing analysts’ expectations.
The company, headquartered in Santa Clara, California, also forecasts gross margins between 74.8% and 75.0% for the fourth quarter, ending in January.
These are levels not seen in the last five quarters.
