Another strong report from Nvidia: “Demand still very high”

TECH

Semiconductor giant Nvidia beat forecasts for both revenue and profit in the third quarter.

The turnover amounted to 35.1 billion dollars, corresponding to 3,871 billion kroner. This can be compared with the forecast according to the analysis company LSEG of 33.2 billion dollars.

The profit per share was 81 cents against the expected 75 cents.

– Another very strong report. The company beats the estimate on all points and by a substantial margin, says Maria Landeborn, analyst at Danske Bank.

Nvidia, which manufactures processors for artificial intelligence and graphics cards, is valued at 3,600 billion dollars or approximately 40,000 billion kroner. This roughly corresponds to the Stockholm Stock Exchange’s total value times three.

– Nvidia has this year grown into the world’s largest company in terms of market value and is unique in that it exceeds expectations quarter after quarter, says Maria Landeborn.

The growing appetite for Nvidia’s products around the world has led to an 850 percent price rise since the AI ​​boom took off two years ago. Since the turn of the year alone, the share has risen by more than 200 percent.

– Judging by these figures, demand is still very high. Investments in AI are still large, and some of Nvidia’s biggest customers are the other tech giants in the US, which means that they are financially very strong customers, says Maria Landeborn.

What sets limits for Nvidia’s future earnings is therefore not demand, but rather what the company can produce.

– The demand for the new Blackwell chip is greater than what Nvidia can deliver for several quarters next year, says Maria Landeborn.