Nvidia announced on Wednesday a significant 95% revenue increase in the third quarter of 2024, reaching $35.1 billion, surpassing previous forecasts.
In the fourth quarter, Nvidia expects revenue of $37.5 billion.
Nvidia’s Q3 Revenue Reflects Strong Demand for AI
The company’s Data Center segment took the lead growth with an increase of 111% to 30.8 billion USD compared to the previous year. The Gaming, Professional Imaging, and Automotive segments also recorded increases of 14%, 16%, and 72%, respectively.
Nvidia’s stock price also increased nearly 30% during Q3, and nearly 200% this year. The company’s performance could be driven by strong demand for Bitcoin mining and AI.
“The AI age is exploding, driving a global shift to NVIDIA computing,” founder and CEO Jensen Huang emphasized in a press release.
Furthermore, the company continues to dominate the GPU mining market. According to data latesttheir RTX hardware has consistently outperformed anything else on the market in terms of GPU mining profitability.
Explore Other Business Directions
Amid rising revenue, Nvidia has been exploring new business directions throughout the past year. The company is entering the field of humanoid robots. The development goal is to equip developers with tools to train robots using data from human representations.
Earlier this year, Nvidia’s market capitalization surpassed the combined value of all Russell 2000 stocks by $10 billion, accounting for 43% of the S&P 500’s return.
However, the company is facing regulatory challenges due to its strong association with cryptocurrency mining. In September, the Department of Justice (DOJ) issued a subpoena as part of an antitrust investigation.
The case is examining whether Nvidia’s practices limit competition in industries like cryptocurrency and AI.
Recently, the Supreme Court has indicated that it is possible to rule narrowly in a shareholder lawsuit. The lawsuit alleges Nvidia misrepresented its reliance on cryptocurrency mining revenue to investors.