Nvidia Earnings: 3 Reasons This Artificial Intelligence (AI) Stock Is Still a Screaming Buy
No company exemplifies the generative artificial intelligence (AI) boom more than Nvidia (NASDAQ: NVDA). As the market leader in designing and retailing advanced data center AI chips, the tech giant has enjoyed skyrocketing revenue and earnings as businesses scramble for its hardware to build and train large language models. Let's discuss Nvidia's third-quarter earnings and what they could mean for its future.
Nvidia's third-quarter earnings highlight its impressive operational momentum. Revenue soared 206% year over year to a record of $18.12 billion, driven primarily by the data center business, which involves the sale of advanced graphics processing units, such as the A100 (used to train OpenAI's ChatGPT) and its more advanced successor, the H100. All in all, this segment expanded 279% year over year to $14.51 billion.
Nvidia's bottom line also increased sharply, with net income jumping 12-fold to $9.2 billion due to rising sales of its high-margin computer hardware. With limited competition, Nvidia isn't under much pressure to lower prices to keep its 80% market share in AI chips.
Source Fool.com
