Nvidia’s stock dropped less than 2% in after-hours trading following its Q3 earnings release, defying expectations of a massive sell-off. The AI chip leader reported revenue that jumped 94% year-over-year to $35.1 billion, exceeding modest expectations. Management expressed confidence about the rollout of its next-generation Blackwell platform.
Nvidia’s CEO highlighted the growing demand for AI computing, citing incredible growth in pretraining, post-training, and inference models. The company’s stock has surged 800% over the last two years, surpassing Apple as the world’s largest company. Despite concerns from Wall Street, analysts overwhelmingly support the stock with 90% of surveyed analysts recommending a buy rating.
The semiconductor industry faces challenges, including a contraction in autos and flagging industrial demand in Europe. However, Nvidia has “held up the index,” according to Baird managing director Ted Mortonson. The company’s growth is expected to continue, driven by the expanding GenAI market. With its stock not expensive relative to peers, investors may be rewarded for holding on to the shares.
Source: https://fortune.com/2024/11/20/wall-street-nvidia-earnings-call