Nvidia (NASDAQ:NVDA) once again delivered the goods. The AI chip colossus’ fiscal third-quarter results showed that the AI opportunity is still well and truly in play.
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In the October quarter, revenue rose by 93.6% year-over-year to reach a record $35.08 billion whilst beating the analysts’ forecast by $1.95 billion. Data Center revenues – the segment containing Nvidia’s AI chips – made up $30.8 billion of that haul, growing by 112% vs. the year-ago period. The strong growth was fueled by demand for the company’s Hopper computing platform, which supports training and inference for large language models, recommendation systems, and generative AI apps.
The adj. gross margin reached 75%, thereby meeting Street expectations, and at the bottom line, adj. EPS of $0.81 outpaced the prognosticators by $0.06.
As has become customary, the outlook was strong too. Looking ahead to FQ4 (January quarter), the company anticipates revenue of $37.5 billion, plus or minus 2%. The Street was calling for just $37.1 billion.
“The age of AI is in full steam,” said CEO Jensen Huang, adding that, “AI is transforming every industry, company and country.”
It has certainly transformed the lives of plenty of NVDA investors, given the shares have almost tripled in value year-to-date, not to mention the past few years’ huge strides.
Rosenblatt analyst Hans Mosesmann, ranked among the top five Wall Street analysts for his stock predictions, described the results as a “solid beat and raise.” He noted “stronger than expected Hopper demand” and highlighted that Nvidia’s Blackwell supply ramp “will be greater than expected (sold out for the next several quarters).”
“Net/Net,” Mosesmann went on to say, “1) Quarter and outlook delivered; 2) Blackwell demand profile is better for 2025; and 3) speculation of ‘power’ issues plaguing the new ramp are discounted, which trumps the near-term networking air-pocket, gaming constraints (AMD will gain here), and GM trajectory for a few quarters to return to mid-70’s%.”
To this end, Mosesmann rates NVDA shares a Buy, while raising his price target to a new Street-high of $220, implying the stock will gain another 50% over the next year. (To watch Mosesmann’s track record, click here)
Overall, Nvidia’s success story has plenty of believers. Out of 42 analysts, 39 recommend buying the stock, with only 3 saying “hold,” culminating in a Strong Buy consensus rating. The average price target of $165.18 implies a ~13% upside, though Mosesmann clearly believes Nvidia has much more room to run. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
