NVIDIA, a leading player in artificial intelligence and graphics processors (NVDA.US), released its third-quarter financial report on Wednesday in the Eastern Time zone. The most recent financial figures reveal that NVIDIA's revenue for the third quarter reached $35.08 billion, a 94% increase compared to the previous year, with a net profit of $19.309 billion, marking a 109% rise, both surpassing market expectations. However, despite this strong performance, NVIDIA's projections for the fourth quarter fell short of the highest forecasts, resulting in a significant post-market drop of over 5% in stock value, which was later mitigated.

According to NVIDIA's financial disclosures for the third quarter under the Generally Accepted Accounting Principles (GAAP), the company achieved an operating income of $35.08 billion, a 94% year-over-year increase, exceeding analysts' median projection of $33.25 billion and NVIDIA’s own guidance range of $31.85 billion to $33.15 billion, although at a slower pace than the 122% year-over-year growth in the previous quarter. The net profit amounted to $19.309 billion, a 109% year-over-year increase and a 16% rise from the previous quarter. The adjusted earnings per share (EPS) for the third quarter, in a non-GAAP context, stood at $0.81, indicating a significant 103% year-over-year increase, higher than analysts' expected $0.74, and showing a slower growth rate of 152% compared to the prior quarter.

The Gaming and AI PC segment contributed $3.3 billion in revenue, a 15% year-over-year increase, surpassing analysts' expectation of $3.06 billion. The Professional Visualization division generated $486 million in revenue, a 17% year-over-year increase, surpassing analysts' expectation of $477.7 million. The Automotive and Robotics sector yielded $449 million in revenue, a 72% year-over-year increase, higher than analysts' expectation of $364.5 million. These figures highlight NVIDIA's strong growth across various business sectors.

NVIDIA's latest fourth-quarter revenue forecast anticipates a 70% year-over-year growth, based on its mid-range revenue guidance of $37.5 billion. While slightly higher than analysts' average expectation of $37.1 billion, it falls short of buyers' anticipated $38.8 billion. Previously, Goldman Sachs forecasted $39 billion for NVIDIA's fourth-quarter revenue, with some analysts even projecting figures as high as $41 billion, indicating a potential growth rate close to 90% year-over-year.

Additionally, NVIDIA's Blackwell chip has garnered significant market attention. NVIDIA CEO Jensen Huang stated that the Blackwell chip is currently in full production and is expected to face increasing demand in the coming quarters. NVIDIA's Chief Financial Officer, Colette Kress, also mentioned that the Blackwell chip is scheduled to begin shipping in the fourth quarter and will ramp up shipments next year. This announcement has partially alleviated market concerns about delays in Blackwell chip deliveries and serves as a primary factor in moderating NVIDIA's post-market stock price decline.

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