From CNBC: 2024-11-20 20:50:57

Nvidia reported record revenue of $35.08 billion and adjusted earnings per share of 81 cents, exceeding estimates. Despite strong results, the stock dipped nearly 2% in extended trading to $143. Nvidia’s CFO announced that the next-generation AI chip, Blackwell, is in full production, with orders expected to exceed supply for several quarters in fiscal 2026.

CEO Jensen Huang addressed concerns about AI model improvements and scaling, stating that the availability of Blackwell chips will enhance model quality at each phase. He also dismissed worries about a digestion phase, predicting continued modernization of data centers. Nvidia’s fiscal fourth quarter guidance of $37.5 billion revenue exceeds estimates, hinting at a growth rate of approximately 70%.

Nvidia’s stock performance has been strong, up nearly 42% year to date. The company’s focus on AI chips and software, as well as expanding into sovereign AI markets, positions it for long-term growth. Despite short-term fluctuations in stock price, analysts remain optimistic, reiterating a 1 rating and raising the price target to $165 per share.



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