A profit measure called earnings per share was also better than expected at $1.30.<\/p>\n
It matters as Nvidia has powered the artificial intelligence (AI) boom through its computer chips, which are key parts in AI chatbots such as ChatGPT.<\/p>\n
More on Artificial Intelligence<\/p>\n
Nvidia has major tech companies as clients and acts as a good proxy for whether the tens of billions of dollars invested in AI is paying off.<\/p>\n
Its chief executive, Jensen Huang, has been described as the Godfather of AI and watch parties were organised for those looking to follow the Wednesday evening announcement.<\/p>\n
The company has been a massive beneficiary of the push to put money into AI, with its share price reaching stratospheric highs.<\/p>\n
In October, it became the first worth $5trn (\u00a33.83trn), about the size of the German economy, Europe’s largest, and double the UK’s benchmark stock index, the FTSE 100. <\/p>\n
What’s been announced?<\/p>\n
Revenue from data centres reached a record high of $51.2bn, more than \u00a310bn higher than the three months previous.<\/p>\n
The outlook is for continuing strong sales in the final three months of the financial year, as the company forecasts revenue will be roughly $65bn. <\/p>\n
Read more: Demand for Nvidia products continues to surpass expectations, while the business is “still in the early innings” of AI transitions, its chief financial officer Colette Kress said.<\/p>\n Mr Huang said sales of its blackwell chips are “off the charts” and its cloud graphics processing chips (GPUs) are “sold out”.<\/p>\n Why it matters<\/p>\n Developing AI infrastructure, like the construction of data centres, has been a significant contributor to US economic growth, as measured by gross domestic product (GDP).<\/p>\n A faltering of AI expansion, therefore, impacts the US economy, the world’s largest, which in turn affects the UK and global economies.<\/p>\n Anxiety around the massive valuations tech companies have accrued, on the hope of AI revolutionising the world, is likely to be staved off by the results announcement.<\/p>\n A fall in these tech company valuations could have meant a drop in the value of pension pots or savings.<\/p>\n Just seven dominant tech companies, many of which have borrowed to invest in AI, make up more than a quarter of major US stock index, the S&P 500.<\/p>\n 1:11<\/p>\n Could the AI bubble burst?<\/p>\n In the last year alone, Nvidia’s share price has risen more than 230%.<\/p>\n Some, including US trader Michael Burry, famous for being played by Christian Bale in the Hollywood film The Big Short, have effectively bet that Nvidia’s share price would fall.<\/p>\n Addressing the topic of an AI bubble, Nvidia’s founder, Mr Huang, said, “From our vantage point, we see something very different”.<\/p>\n What next?<\/p>\n Regardless of the figures released on Wednesday evening, significant market moves were anticipated, given the attention paid to the results and the significance of the company.<\/p>\n Nvidia shares rose as much as 4% in after-hours trading.<\/p>\n The results also boosted the share price of its chip-making competitors like Broadcom and Advanced Micro Devices.<\/p>\n
Nvidia boss defends against claims of bubble by ‘Big Short’ investor<\/a>
Inflation slows to 3.6%, but food costs shoot upwards<\/a><\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2025\/11\/skynews-jansen-huang_7072889.jpg\")
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