IT Stocks: After Nvidia’s impressive Q3 results, the market will be closely watching the IT sector today. Amid concerns over the AI bubble, Nvidia has posted stellar results. The company’s revenue and EPS have exceeded expectations. In Q3, its sales amounted to $57 billion, and the company projects that sales could reach $65 billion in Q4. Nvidia’s stock surged nearly 4% in the previous trading session.
Meanwhile, Nvidia’s CEO, Jensen Huang, mentioned the strong demand for their AI chips from major cloud providers. He also dismissed concerns over the AI bubble.
Nvidia Shines in Q3:
In Q3, Nvidia exceeded its expected results, with both revenue and EPS surpassing estimates. The company’s revenue for Q3 was $57.01 billion, while analysts had expected it to be around $54.92 billion. The EPS for the third quarter was $1.30, higher than the expected $1.25. The company has forecasted sales of $65 billion for Q4. Nvidia’s stock saw a 5% rise yesterday. Along with Nvidia, stocks of Broadcom, AMD, Micron, and TSMC also saw an uptick.
Jensen Huang’s Comments After the Results:
After the results, CEO Jensen Huang stated that the sales of the Blackwell chips in Q3 were higher than expected. He acknowledged the ongoing discussions around the AI bubble and expressed disappointment that the company couldn’t ship Blackwell chips to China. However, he highlighted the huge demand for Nvidia’s AI chips from major cloud providers and dismissed concerns about the AI bubble.
Understanding Nvidia’s Growth:
Nvidia has provided guidance for Q4, indicating that the company expects sales to continue growing. For Q4, Nvidia is anticipating $65 billion in sales. In FY23 Q4, Nvidia’s sales were just $6 billion. Over the first 9 months of FY26, Nvidia’s profit reached $77.1 billion, surpassing the combined sales of Intel and AMD. By the end of FY26, the company’s profits are projected to hit $100 billion.
