Shares in U.S. chip giant Nvidia (NAS100:NVDA) have risen around 10% after hours after the company released its latest earnings report.
NVDA – Daily Chart
The price of NVDA shares was set to open at around $196.50 on Thursday. That could mean the dip to $180 was a near-term bottom, and suddenly, the $200 level will be back on traders’ minds.
The company’s latest earnings beat analysts’ expectations, and CEO Jensen Huang gave investors a positive outlook for AI technology.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” said Huang. “Compute demand keeps accelerating and compounding”.
“The AI ecosystem is scaling fast, with more new foundation model makers, more AI startups, across more industries, and in more countries,” he added.
Nvidia expects fiscal fourth-quarter revenue of $65 billion, with a 2% range up or down. That beat Wall Street projections for $62.38 billion, according to Visible Alpha data.
The results helped to soothe investor worries about AI and its financing.
“I think people are really gonna need (CEO Jensen Huang) to explain this circular deal mentality, because I don’t think it’s stopping anytime soon,” said Ben Reitzes at Melius Research on CNBC, ahead of the report. Questions could be asked during the company’s earnings call, which could see the company add to its gains.
Nvidia added that GAAP fiscal third-quarter gross margins, a closely watched profitability measure, of 73.4%, up from 72.4% in the second quarter. The latest figure was a decline from a year earlier, when it was 74.6%.
Revenue jumped 62% year-over-year to a record $57 billion in the third quarter. That compares with Street expectations for $55.4 billion, according to recent analysts’ estimates.
Nvidia’s data centre sales continued to climb to a quarterly record of $51.2 billion, up 66% from a year ago, and above the analyst consensus. Many of Nvidia’s Big Tech clients continue to ramp up spending on AI infrastructure and have committed to further spending in 2026.
Nvidia saw its stock price struggle this week, and news that SoftBank and Peter Thiel had dumped their entire stakes wasn’t good ahead of the report. The Nvidia story will dominate markets on Thursday as we await U.S. data.
