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Nvidia AI Chip Demand Surges Past Expectations
20 Nov
Summary
- Nvidia's revenue grew 62% to $57 billion, exceeding Wall Street's projections.
- Profits reached $31.9 billion, marking a 65% increase year-over-year.
- Cloud GPUs are sold out, and Blackwell sales are exceptionally strong.
Nvidia announced impressive financial results, with revenue and profits exceeding analyst expectations and providing a potential boost to the stock market. The company's sales for the October quarter reached $57 billion, a 62% increase year-over-year, signaling sustained demand for its artificial intelligence chips amidst growing market scrutiny.
Profitability also saw substantial growth, with earnings climbing to $31.9 billion, up 65% from the previous year, comfortably beating projections. CEO Jensen Huang expressed optimism, noting that sales for the new Blackwell architecture are "off the charts" and cloud GPUs are entirely sold out, countering widespread fears of an AI investment bubble.
These strong results have implications beyond Nvidia, as the company is a cornerstone of the AI boom and a significant component of major stock indices. The positive report led to an increase in Nvidia's stock and offered a ripple effect of optimism across other tech giants like Meta, Microsoft, Amazon, and Google in after-hours trading.
