Nvidia recently released its financial results for the third quarter of 2024, reporting revenue of $18.12 billion and a profit of $4.02 per share, beating analysts’ forecasts in both cases. The company also reported a 206% increase in profits compared to the corresponding quarter the previous year. However, the stock experienced a 0.5% drop in late trading.
In addition to its financial results, Nvidia made other noteworthy 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 drop in sales to China in the last quarter of the year, but expects that strong growth in other regions will offset this decline.
Despite recent challenges such as trade restrictions and competition from AMD, Nvidia remains a dominant force in the field of GPU chips designed for artificial intelligence (AI). The company recently announced an improved processor with better performance. Analysts have raised concerns about trade restrictions in China and competition from AMD in the generative AI market.
Nvidia’s stock has risen by about 250% since the start of the year, while the S&P 500 index has added only about 18%. Despite this growth, concerns have been raised about trade restrictions imposed by the US government on China and potential competition from AMD.
During an earnings call after publication, investors may ask questions about OpenAI’s recent shakeup with CEO Sam Altman being dismissed as well as how Nvidia plans to comply with US policy on trade restrictions.
Despite these challenges, Nvidia continues to innovate and succeed in its field making it a company worth watching moving forward.