Q4 guidance also exceeded the analyst consensus estimates on the top and bottom lines. Nvidia's report indicates that the outlook for the AI market in general remains robust. Investors' positive reaction is attributable to Q3 revenue and adjusted earnings per share both beating Wall Street's estimates,

The good news on this front is that the current production cycle for Blackwell, Nvidia's latest chip, is underway and in its most capital-intensive stages. This means that we may see a rise in profitability as they move into later stages of production and become more efficient.

Nvidia offered strong guidance for the current quarter following fiscal third-quarter results that topped Wall Street estimates on Wednesday as the AI arms race continued to drum up demand for its latest AI Blackwell chips.

Nvidia Q3: revenue up 62% and net income up 65% on strong AI chip demand; shares up ~4% after hours; market cap recently topped $5T.

The company reported quarterly revenue of $57bn for the three-month period, up from $35bn in the same period last year.

Nvidia (NVDA) shares rose 3.7% in extended trading on Wednesday after the semiconductor giant posted third-quarter results and guidance that were above Wall Street's forecast amid insatiable demand for artificial intelligence processors.

Nvidia beat Wall Street’s targets for its fiscal third quarter and guided above estimates for the current period. Nvidia stock advanced on the news.

Nvidia (NVDA) reported its third quarter earnings on Wednesday, beating analysts' estimates on the top and bottom lines and offering a better than anticipated outlook. For the fourth quarter Nvidia projects revenue of $65 billion plus or minus 2%.