Nvidia (NVDA) recently reported its third quarter earnings after the bell on Wednesday. The results were remarkable, with sales of its high-powered AI chips driving the company to exceed expectations. This achievement was highlighted by CEO Jensen Huang, who referred to it as the “age of AI.”

Impressive Earnings and Revenue

As the world's largest publicly traded company by market cap, Nvidia reported earnings per share (EPS) of $0.81 on revenue of $35.1 billion. Analysts had anticipated EPS of $0.74 on revenue of $33.2 billion. This indicates the company's strong performance and its ability to meet and exceed market expectations.The company also provided an optimistic forecast for the fourth quarter, anticipating revenue of $37.5 billion, plus or minus 2%. This is just ahead of Wall Street expectations of $37 billion, showcasing Nvidia's confidence in its future growth.

Data Center Business: A Powerhouse

Nvidia's Data Center business, which constitutes the majority of its revenue, performed exceptionally well in the quarter. It brought in $30.8 billion, beating analysts' expectations of $29 billion and showing a significant growth of 112% compared to the $14.5 billion it made in Q3 last year. This highlights the increasing demand for Nvidia's computing solutions in the data center space.

Gaming Revenue: Steady Growth

Nvidia's gaming revenue also showed positive growth, coming in at $3.3 billion, up from $2.8 billion last year. Analysts had expected $3 billion, indicating that Nvidia is maintaining its position in the gaming market while also expanding into the AI-driven landscape.

Stock Performance: A Rocket to the Stars

Nvidia's stock has been on a remarkable upward trajectory throughout 2024. Thanks to the explosive growth in AI across the tech landscape and beyond, the stock has nearly tripled in value over 11 months. Shares of Nvidia were up 192% year to date as of Wednesday, easily outpacing its chipmaker rivals. AMD (AMD), the closest competitor, saw its stock price sink over 5% year to date, while Intel (INTC), facing a difficult turnaround, has seen its stock plunge nearly 52%.

Addressing Supply Concerns

Nvidia also appeared to ease concerns about potential slowdowns in the availability of its next-generation Blackwell chip. CFO Colette Kress stated that the AI GPU will begin shipping in the current quarter and ramp into the year ahead. She added that both Hopper and Blackwell systems have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026.This shows Nvidia's commitment to meeting the growing demand for its products while also managing supply constraints. It highlights the company's ability to navigate the challenges of the market and continue its growth trajectory.