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Nvidia is single-handedly keeping the AI trade alive with another quarter of absurd strength.
The chipmaker once again beat Wall Street’s earnings estimates, reporting earnings per share of $1.30 on record revenue of $57 billion.
The stock surged in overnight trading as did other technology names, as if the results gave the rest of the market permission to move on from the recent sell off.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” CEO Jensen Huang said in a statement.
“Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”
Data center sales hit $51.2 billion in the quarter, surpassing analysts’ forecasts for $49.09 billion and marking a 66 percent increase compared to a year ago.
Meanwhile, the company announced it paid out $243 million in dividends in the quarter.
“There has been a lot of talk about an AI bubble,” Huang said on the earnings call. “We see something different.”
“Fears of an AI Bubble are way overstated in our view,” said Wedbush’s Dan Ives. “This is another validation point for the AI Revolution…this will be a foundational bullish data point for hyperscale names Microsoft, Google, Amazon, Oracle and software plays such as Palantir and Oracle.”
Now, while Nvidia’s total revenue was record-breaking, its revenue growth from a year ago slowed once again.
Understandably, the trajectories of both have diverged for several quarters given the sheer size of the company. Including the latest earnings release and guidance, Nvidia expects to pull in roughly $208 billion for the full fiscal year.
That would mark a 59 percent increase from a year ago — still impressive but a sharp decline from the previous growth rate of 114 percent.
While those figures satisfy Wall Street today, a slowing growth rate — no matter the total revenue amount — could eventually turn investors against the stock, regardless of how strong the demand story remains.
“All Nvidia has done is crush,” Douglas Boneparth, president of Bone Fide Wealth, told me on my show Full Signal ahead of the earnings results. “What if it gets to a point where they just don’t crush as much?”
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Phil Rosen
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