Nvidia announced on Wednesday a significant 95% increase in revenue in the third quarter of 2024, reaching $35.1 billion, surpassing previous forecasts.
In the fourth quarter, Nvidia expects to achieve revenue of $37.5 billion.
Nvidia's Q3 Revenue Reflects Strong Demand for AI
The company's Data Center segment led the growth with a 111% increase to $30.8 billion year-over-year. The Gaming, Professional Visualization, and Automotive segments also recorded increases of 14%, 16%, and 72%, respectively.
Nvidia's stock price also rose nearly 30% throughout Q3, and nearly 200% this year. The company's performance may be driven by the surging demand for Bitcoin mining and AI.
"The AI era is exploding, driving a global transition 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 the latest data, their RTX hardware has consistently outperformed any other product on the market in terms of GPU mining profitability.
Exploring New Business Directions
Amid the surging revenue, Nvidia has been exploring new business directions throughout the past year. The company is venturing into the humanoid robotics field. The development goal is to equip developers with tools to train robots using data from human performances.
Earlier this year, Nvidia's market capitalization surpassed the combined value of all Russell 2000 stocks plus an additional $10 billion, accounting for 43% of the S&P 500's profits.
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 have limited competition in industries such as cryptocurrency and AI.
Recently, the Supreme Court indicated that it may issue a narrow ruling in a shareholder lawsuit. The lawsuit alleges that Nvidia misrepresented its dependence on revenue from cryptocurrency mining to investors.
