Nvidia shares jump in premarket after strong Q3 results
Shares of AI-focused chipmaker Nvidia jumped in premarket trading following the release of its third-quarter results after Wednesday’s closing bell.
As of 4:15 a.m. ET, shares were trading 5.5% higher, News.Az reports, citing CNBC.
Nvidia exceeded revenue expectations, posting a 62% year-on-year increase to $57.01 billion, and provided stronger-than-expected guidance for fourth-quarter sales.
“There’s been a lot of talk about an AI bubble,” Nvidia CEO Jensen Huang told investors on an earnings call, as the firm set out its view of the industry. “From our vantage point, we see something very different.”
Quilter Cheviot’s Ben Barringer, who is the global head of technology research and investment strategist, told CNBC’s “Europe Early Edition” that Nvidia brought relief in two-parts: it beat gross margins, which is important for semiconductor stocks, but the firm also addressed market concerns head-on in its earnings call.
“They really went through and sort of tried to disprove pretty much all of the bear cases out there. They talked about scaling laws, they talked about all the different elements of demand, not just hyperscaler capex, but the model demand that they’re seeing from companies like OpenAI and Anthropic, software demand, enterprise demand, sovereign AI,” Barringer said.
Nvidia also addressed supply constraints, vendor financing, partnerships and China. “So they really did a stand up job of calling out every elephant in the room, every every possible bear case, and going through and giving their perspective on it,” Barringer added.
Nvidia’s upbeat guidance helped lift investor sentiment around the AI trade, which has weakened in recent sessions amid fears about elevated valuations, debt financing and potential chip depreciation. The results boosted a slew of stocks across the AI ecosystem in the after-hours session, including chipmakers Advanced Micro Devices and Broadcom and power infrastructure companies such as Eaton.
Asia chip stocks also rallied on Thursday, with Samsung Electronics and Hon Hai Precision Industry, also known as Foxconn, leading gains.
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