Unveiling NVIDIA’s Earnings Performance: Can the Momentum Last?

When it comes to picking stocks, one stands out as a clear favorite – NVIDIA Corporation (NVDA). The reasons for this preference are numerous, from being a leader in the AI industry to showcasing robust sales and earnings growth. Since its addition to the Growth Investor Buy List in May 2019, NVIDIA has surged over 3,420%, making it a standout performer in the market.

NVIDIA’s Latest Earnings Review

Record-Breaking Revenue

• NVIDIA reported a remarkable third-quarter revenue of $35.1 billion, up 94% year-over-year.
• Data center revenue also hit a new high, increasing by 112% year-over-year to $30.8 billion.
• This marks the sixth consecutive quarter of record revenue and data center revenue for NVIDIA.
  

  Stellar Earnings Growth
  

• Third-quarter earnings soared by 103% year-over-year to $0.81 per share.
• Gaming revenue grew by 15% year-over-year to $3.3 billion.
• Automotive revenue for the quarter stood at $449 million, reflecting a 72% increase from the same period in 2024.
  

  Strong Outlook and Market Response
  

• NVIDIA anticipates fourth-quarter revenue to reach around $37.5 billion, a 70% increase from the previous year.
• Despite some market expectations for higher sales acceleration, NVIDIA’s forecast aligns with estimates.
• The company’s conservative outlook suggests potential for even stronger performance in the future.
  

  Stock Grader Analysis
  

• The Stock Grader tool assigns NVIDIA a Fundamental grade of B, a Quantitative grade of B, and an overall "B" grade, signaling a "Buy" recommendation post-earnings.
  

  The Next Wave of the AI Boom
  

  While NVIDIA continues to deliver impressive results, the AI industry is poised for a broader expansion in 2025. The upcoming wave of the AI Boom is expected to drive significant growth opportunities for companies integrating AI into traditional business models.

  Infrastructure Development for AI Expansion
  

• Building necessary infrastructure for large-scale computing projects is crucial for maximizing AI’s potential.
• Rapid infrastructure development is essential to facilitate the second wave of the AI Boom.
  

  Trump’s Influence on AI Stocks
  

• The upcoming executive order by President Trump aims to boost U.S. supremacy in the AI race.
• The order is expected to propel select AI stocks to new heights, presenting lucrative investment opportunities for investors.

  In conclusion, NVIDIA’s latest earnings report showcases its strong performance and future growth prospects. As the AI industry evolves, investors can capitalize on the potential of AI stocks, including NVIDIA, to generate substantial returns in the years ahead.

  Sincerely,

  Louis Navellier
  Editor, Market360

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  The Editor discloses ownership of NVIDIA Corporation (NVDA) securities as of the date of this communication.