What Happened?
Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 2.1% in the morning session after the company reported third-quarter results that beat Wall Street expectations and provided a strong revenue forecast for the upcoming quarter, amid "off the charts" demand for its next-generation GPUs.
The chipmaker announced quarterly revenue of $57.01 billion, a 62.5% increase from the same period last year, exceeding analysts' forecasts. The company's adjusted earnings per share of $1.30 also topped estimates and represented a jump of over 60% year-over-year. Looking ahead, Nvidia issued an optimistic forecast, expecting revenue of about $65 billion for the fourth quarter, which was also ahead of expectations. CFO Colette Kress emphasized that the company is "still in the early innings" of platform shifts toward accelerated computing and AI, adding that customer demand continues to outpace supply. These strong results appeared to ease investor concerns about a potential slowdown in spending on artificial intelligence technology.
After the initial pop the shares cooled down to $187.64, up 0.4% from previous close.
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What Is The Market Telling Us
Nvidia’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 24 hours ago when the stock gained 1.7% as investor optimism grew ahead of its fiscal third-quarter earnings report, bolstered by a major new partnership with Microsoft and AI firm Anthropic.
On the previous day, Nvidia and Microsoft announced a massive strategic partnership, planning to invest up to $10 billion and $5 billion, respectively, in Anthropic. As part of the deal, the AI company committed to using Nvidia's advanced hardware. This news was coupled with high expectations for the earnings results due after the market close, with analysts forecasting revenue to increase by about 56% year-over-year to nearly $55 billion. The positive sentiment was reinforced by several analysts. For instance, Stifel raised its price target on the stock to $250, while Bank of America reiterated its Buy rating, citing a backlog of over $500 billion in orders for the company's Blackwell and Rubin chips.
Nvidia is up 35.7% since the beginning of the year, but at $187.64 per share, it is still trading 9.4% below its 52-week high of $207.04 from October 2025. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $14,337.
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