Nvidia CEO Jensen Huang Forecasts Exceptional Q4 Following Strong Earnings

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Nvidia CEO Jensen Huang Forecasts Exceptional Q4 Following Strong Earnings

Nvidia’s CEO Jensen Huang has projected an exceptional performance for the company in the upcoming fourth quarter, following impressive third-quarter earnings. During an interview on FOX Business Network’s “The Claman Countdown,” he described the anticipated results as “crazy good,” emphasizing Nvidia’s crucial role in the global artificial intelligence (AI) landscape.

Nvidia’s Strong Third-Quarter Earnings

Nvidia reported a remarkable 62% increase in sales during the third quarter, marking its first acceleration in seven quarters. The company recorded revenues of $51.2 billion for that period, surpassing analysts’ expectations of $48.62 billion.

Fourth-Quarter Forecast

For the fiscal fourth quarter, Nvidia expects sales to be approximately $65 billion, with a margin of plus or minus 2%. Analysts had predicted an average of $61.66 billion. Furthermore, they project an adjusted gross margin of around 75% for this quarter.

Market Impact and Investor Confidence

Nvidia’s robust performance has contributed positively to its stock, which saw a 5% increase in after-hours trading, potentially adding $220 billion to its market value. This resurgence calmed investors worried about an AI bubble and the sustainability of Nvidia’s rapid growth.

Shares of Nvidia have risen 35% this year.
The S&P 500 has increased by 13% in the same period.
Nvidia holds a significant position in various ETFs, featuring prominently in 673 diverse funds.

Guidance for Future Growth

Huang mentioned that Nvidia has $500 billion in bookings for advanced chips through 2026. He emphasized the company’s ongoing transformation in computing, stating, “We reinvented computing for the first time in 60, 70 years.”

Broader Market Influence

Following Nvidia’s announcements, stocks of competitors such as AMD, Alphabet, and Microsoft have also seen gains. Nvidia’s influence on the market is significant, being the largest stock in the S&P 500, which impacts various investment funds linked to the index.

Nvidia and AI Infrastructure

Huang expressed confidence in the long-term build-out of AI infrastructure, suggesting that the modernized computing landscape would benefit humanity for years to come. He defended the company’s presence in the market, claiming, “We’re in every cloud.”