NVIDIA Corporation (NASDAQ: NVDA), the AI and semiconductor giant, delivered an impressive third-quarter earnings report on November 20, 2024. The company surpassed Wall Street expectations with robust revenue growth driven by its data center and AI computing segments. However, despite this double beat, NVDA stock experienced a pullback as concerns about growth deceleration dampened investor enthusiasm.
NVIDIA reported third-quarter revenue of $35.1 billion, a 94% increase year-over-year and a 17% sequential gain. This figure outpaced analysts’ consensus forecast of $33.2 billion. The data center division stood out with revenue reaching $30.8 billion, surpassing the anticipated $29.1 billion.
The company reported GAAP earnings per share of $0.78, reflecting a 111% annual increase. Non-GAAP EPS came in at $0.81, up 103% from the prior year. These figures solidified NVIDIA’s position as a leader in AI-driven markets, capitalizing on its Hopper and Blackwell GPU architectures.
CEO Jensen Huang noted, “The age of AI is in full steam, propelling a global shift to NVIDIA computing. Demand for Hopper and anticipation for Blackwell—now in full production—remain incredible as foundation model makers scale their operations.”
Despite the strong performance, NVIDIA’s fourth-quarter revenue guidance of $37.5 billion, slightly above the $37.1 billion consensus, failed to ignite excitement. Analysts attribute this tepid response to broader market concerns about growth deceleration and macroeconomic challenges.
Angelo Zino, a senior equity analyst at CFRA Research, expressed optimism about the company’s long-term potential. “If you’re an investor out there looking to get into NVDA stock, the fundamentals and free cash flow potential remain incredibly strong,” Zino said.
NVIDIA continues to benefit from its leadership in AI and accelerated computing. Enterprises are increasingly adopting its technologies for applications ranging from agentic AI workflows to industrial robotics. Countries are also investing heavily in AI infrastructure, recognizing its strategic importance.
Jensen Huang emphasized this momentum, stating, “AI is transforming every industry, company, and country. Enterprises are adopting agentic AI to revolutionize workflows, and industrial robotics investments are surging with breakthroughs in physical AI.”
Following the earnings report, NVDA stock fell in after-hours trading, reflecting concerns about the company’s growth trajectory. Despite the dip, analysts remain bullish on the stock’s long-term prospects given NVIDIA’s market dominance and innovation pipeline.
In addition to its earnings, NVIDIA announced its next quarterly dividend of $0.01 per share, payable on December 27, 2024, to shareholders of record as of December 5.
While NVIDIA remains at the forefront of the AI revolution, the company faces challenges such as global economic uncertainties, competition, and evolving consumer preferences. Its reliance on third-party manufacturing and supply chain dynamics also introduces risks.
For investors, the NVDA stock dip presents a potential buying opportunity given the company’s dominant position in AI and data center markets. However, cautious optimism is warranted as growth deceleration concerns could weigh on short-term performance.