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Nvidia, the world's biggest company with a $3.5 trillion market capitalization, reported its third-quarter earnings on Wednesday after market close.
Lukman Otunuga, senior market analyst at online trading broker FXTM, told Entrepreneur before the earnings release that "with Nvidia's jaw-dropping performance in 2024, expectations are sky-high."
"The earnings could either propel the stock to fresh all-time highs or pull it below key support levels, depending on the guidance shared," Otunuga remarked in an emailed statement.
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Nvidia's overall revenue was $35.1 billion, above estimates of $33.2 billion, and the AI chipmaker's data center revenue was $30.8 billion, also above the expected $29.1 billion.
Melissa Otto, head of technology, media, and telecommunications research at S&P Global Visible Alpha, told Bloomberg ahead of the earnings that the number for Nvidia to "meet or beat" was $29 billion for data center revenue; Nvidia beat the forecast on Wednesday.
Nvidia announced that it will start shipping out its new AI chip Blackwell in the fourth quarter and that demand is expected to exceed supply for several quarters. The company forecasted its fourth-quarter revenue at $37.5 billion.
Bloomberg data predicts a close to $300 billion swing in Nvidia's market value on Thursday, or an 8% move in either direction.
Related: Here's Why Nvidia Just Broke Another Record
The critical matter for Nvidia is its new Blackwell chip, which CEO Jensen Huang has said encountered "insane demand."
Though the chip has recently faced reports of overheating, Otto states that Blackwell is expected to bring in $63 billion in revenue for the company next year, a 10% increase from forecasts given just last week.
"Clearly sentiment is improving around Blackwell," Otto said.
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