Nvidia reported its financial results for the third quarter of 2024, achieving revenue of $18.12 billion and a profit of $4.02 per share, exceeding analysts’ forecasts in both cases. The company also experienced a 206% increase in profits compared to the corresponding quarter the previous year. However, the stock price dropped by 0.5% in late trading.
In addition to its financial results, Nvidia made several significant announcements. The company revealed that an Israeli supercomputer is on its way and also noted that Sam Altman, after a surprising dismissal, has moved to Microsoft. The company anticipates a significant decline in sales to China in the last quarter of the year but expects strong growth in other regions to offset this decline.
Nvidia’s stock value has risen by about 250% since the beginning of the year, while the S&P 500 index has added only about 18%. The chip manufacturer’s market value now stands at $1.25 trillion, well above Tesla and Meta. Despite recent concerns about trade restrictions in China and competition from AMD in the generative artificial intelligence market, Nvidia remains a dominant force in GPU chips designed for AI applications and recently announced an improved processor with better performance.
Analysts have raised concerns about trade restrictions imposed by US policy on China and competition from AMD in generative AI market; however investors previously dismissed these concerns due to US government’s trade restrictions on China operations but this issue may require further attention as it could affect company’s future performance.
Despite these challenges, Nvidia continues to innovate and succeed in its field by developing dedicated chips for China while complying with US policy which makes it a company worth watching moving forward.
Furthermore, there was negative trend observed across broader market with drop of 0.9% late trading despite these challenges Nvidia continued to innovate and succeed making it a top player in its industry.