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Nvidia Shares Jump After Strong Q3 Results and Upbeat AI Outlook

Prime Highlights

  • Nvidia reported a 62% year-on-year revenue increase to $57.01 billion, beating analyst expectations and easing concerns about slowing AI demand.
  • CEO Jensen Huang emphasized robust and expanding AI demand from cloud providers, developers, enterprises, and national AI initiatives.

Key Facts

  • Nvidia’s results and guidance boosted investor sentiment across the AI sector, lifting shares of companies like AMD, Broadcom, and Eaton.
  • Asian markets also rose, with chip stocks from Samsung Electronics and Foxconn contributing to gains in the global semiconductor supply chain.

Background

Nvidia shares jumped 5.5% in premarket trading on Thursday after the U.S. chipmaker reported better-than-expected third-quarter results and delivered strong guidance for the fourth quarter. The company posted a 62% year-on-year rise in revenue to $57.01 billion, surpassing analyst forecasts and easing concerns around slowing AI demand.

During the earnings call, Nvidia CEO Jensen Huang addressed recent market talk about a potential “AI bubble.” He said the company continues to see strong and expanding demand across the industry, noting, “From our vantage point, we see something very different.” Huang highlighted that demand is growing not only from major cloud providers but also from leading AI developers, enterprise clients, and national AI initiatives.

Analysts said Nvidia reassured investors by taking on major concerns directly. Ben Barringer of Quilter Cheviot told CNBC that the chipmaker brought “two-part relief” by beating gross margin expectations and responding clearly to market doubts. He added that Nvidia addressed “every possible bear case,” including supply limits, financing concerns, global partnerships, and its outlook for China.

The company’s bullish guidance lifted investor sentiment across the AI sector, which had weakened in recent weeks due to concerns about high valuations, rising debt, and possible chip depreciation. Following Nvidia’s results, shares of AI-linked companies such as Advanced Micro Devices, Broadcom, and Eaton rose in after-hours trading.

Asian markets also gained on Thursday as chip stocks rose. Samsung Electronics and Hon Hai Precision Industry (Foxconn) drove the gains, showing renewed confidence in the global semiconductor and AI supply chain.

Nvidia’s strong performance and confident outlook reinforced its position at the center of the booming AI hardware market and boosted broader confidence in the sector.