Nvidia Blows Past Expectations with $96B Quarter

Nvidia's earnings report was a resounding success, exceeding expectations in both revenue and earnings. The company reported $96.2 billion in revenue for the quarter, up 18% from the previous quarter and 106% from the same period last year.

Earnings came in at $2.22 per share, beating analyst estimates of $2.08. The company also guided to $108 billion in revenue for the current quarter, a significant increase over Wall Street's expectations.

Nvidia's CFO, Colette Kress, attributed the strong guidance to the growing demand for AI technology, particularly in the area of agentic AI. CEO Jensen Huang noted that AI has reached an inflection point, where its tokens are productive and profitable, leading to increased compute revenue.

The company also reported a small blemish in their margins, with gross margin expected to slip before bottoming out at 71-72% in the fiscal fourth quarter. The main culprit behind this decline is soaring memory prices.