Net profit stood at $19.3 billion, according to a company press release published Wednesday, a figure more than doubled over one year (+109%) and well above the $17.4 billion projected by analysts. according to a consensus established by FactSet.
These results were eagerly awaited by Wall Street, because the Californian group is considered the standard-bearer of the generative artificial intelligence (AI) revolution.
Nvidia is, in fact, by far the largest producer of so-called GPU (Graphics Processing Unit) chips, also called graphics cards, which are considered essential to the development of generative AI.
“The AI era is in full swing and is driving a global movement towards Nvidia products,” commented CEO Jensen Huang, quoted in the press release.
“The demand is incredible for the Hopper and the expectation for the Blackwell, whose production is at cruising speed,” he added. “AI is transforming all industries, societies and countries.”
The Hopper is a family of microprocessors that includes the H100, the firm’s flagship product, by far the most popular in the sector and worth several tens of thousands of dollars each.
In mid-March, Nvidia presented the Blackwell, a family of GPUs successor to the H100, which it describes as “the most powerful chip in the world”.
“Deliveries from Blackwell should begin this quarter (which will end at the end of January) and accelerate” during the next financial year, indicated financial director Colette Kress.
“We expect demand for Blackwell to exceed supply for several quarters” of next year, she said.
“Dominant position” ___
“These results reinforce the idea that Nvidia is a once-in-a-generation company shaping the next industrial revolution,” said Derren Nathan of Hargreaves Lansdown.
Turnover for this delayed quarter, completed at the end of October, reached $35.1 billion, up 94% year-on-year.
For the last quarter of its financial year, Nvidia expects revenues to increase by 70%.
Despite this pace of progress, the publication of the Santa Clara (California) company was received with reservation.
The title lost 1.70% in electronic trading after the close on Wall Street.
Among the few downsides, the fact that the company expects a slight decline in its gross margin for the current quarter compared to the previous one, to fall into a range between 73% and 73.5%.
This margin had already eroded in the second quarter, due to the use of more expensive systems in data centers, which are used to develop generative AI software, also called models.
“We could look for the little beast, but many companies would tear their arm for a margin greater than 70%”, put Derren Nathan into perspective, “and this threshold does not seem to be in danger in the short term”.
Nvidia is looking to expand, particularly in automotive and professional visualization (graphics), but data centers still represent around 88% of its revenue.
“Nvidia continues to demonstrate its dominant position in the AI chip market (…) but fears remain about the pace of Blackwell production and the concentration of customers,” reacted analyst Jacob Bourne.
The big players in generative AI such as Microsoft, Google, Amazon Meta and OpenAI already use hundreds of thousands of GPU chips and thus constitute a significant part of the demand for Nvidia.
“Despite Nvidia’s technological advance (…), it has little room for a failure in 2025,” warns the analyst.
**Beyond hype, what are the most practical and ethical frameworks needed to ensure AI development benefits society as a whole?**
Okay, here’s a potential outline for an interview based on the provided article, designed to generate insightful discussion and diverse perspectives.
## Interview: Nvidia’s AI Dominance - Boom or Bubble?
**Guests:**
* **Dr. Evelyn Reed:** Professor of Computer Science specializing in AI & Machine Learning, University of California, Berkeley
* **Mark Johnson:** Senior Analyst at an independent investment firm specializing in technology sector
**Moderator:** [Your Name/Host Name]
**Introduction:**
Welcome to World Today News. Nvidia’s recent earnings report has sent shockwaves through both the tech and financial worlds. With profits more than doubling year-over-year, driven by explosive demand for their AI chips, Nvidia is being hailed as the architect of the AI revolution. But is this dominance sustainable or could it be a bubble waiting to burst? Today, we delve into these questions with two leading experts.
**Section 1: The AI Surge – Opportunity or Hype?**
* **Moderator:** Dr. Reed, Nvidia’s CEO, Jensen Huang, claims “the AI era is in full swing.” Do you see this echoed in your research and the broader scientific community?
* Question to both guests: What are the most promising and realistic applications of AI emerging right now, beyond the hype? Conversely, what are some potential pitfalls or ethical concerns that need to be addressed?
* **Moderator:** Mark, from an investor perspective, how much of Nvidia’s success is driven by genuine technological advancements versus market speculation surrounding AI?
**Section 2: The Nvidia Advantage – A Monopoly in the Making?**
* **Moderator:** Nvidia controls a significant share of the GPU market. Dr. Reed, is this dominance a cause for concern, potentially stifling innovation?
* **Question to both guests:** Should there be regulations or policies to encourage competition in the AI chip market? What are the potential benefits and drawbacks?
* **Moderator:** Mark, how sustainable is Nvidia’s current position? Could we see new players emerge, or are they too far ahead of the curve?
**Section 3: Beyond Data Centers – The Future of AI Applications**
* **Moderator:** Nvidia is branching out into automotive and visualization. Dr. Reed, where do you see the biggest potential for AI to disrupt other industries?
* **Question to both guests:** What are some unexpected or underappreciated areas where AI could have a transformative impact in the coming years?
**Section 4: Navigating the Risks – A Question of Sustainability**
* **Moderator:** The article mentions concerns about the concentration of customers for Nvidia, with tech giants relying heavily on their chips. Mark, does this create a vulnerability for Nvidia, particularly if demand from these companies slows down?
* **Question to both guests:** What are the biggest risks that could derail Nvidia’s continued success in the AI space? How well positioned is the company to mitigate these threats?
**Conclusion:**
* **Moderator:** Thank you both for sharing your valuable insights. Nvidia’s journey is far from over. It will be fascinating to watch how this tech giant navigates the complex landscape of the AI revolution.
**Additional Considerations:**
* Encourage a lively and respectful debate between the guests, highlighting differing viewpoints.
* Use visuals such as charts or diagrams to illustrate key data points from the article.
* Conclude with a thought-provoking question for the audience to consider.
* Post a link to the original article for further reading.
