---
title: "Nvidia Shares Falter Despite Staggering AI Driven Profit Growth"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-11-22T05:46:07+00:00"
modified: "2024-11-22T05:46:07+00:00"
date: 2024-11-22
canonical: "https://stockmark.it/nvidia-shares-falter-despite-staggering-ai-driven-profit-growth/"
category: "Artificial intelligence"
categories: ["Artificial intelligence", "Markets", "Tech", "Technology"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-09-06T105945.680.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Nvidia Shares Falter Despite Staggering AI Driven Profit Growth

**Published:** November 22, 2024
**Author:** Stockmark.IT Website
**Categories:** Artificial intelligence, Markets, Tech, Technology
**Featured image:** ![Nvidia logo with graphics cards in the background. Cost of renting Nvidia AI chips is cheaper in China. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-09-06T105945.680.jpg?fit=1200%2C800&quality=89&ssl=1)

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The world’s most valuable chipmaker, Nvidia, has reported spectacular quarterly results, with sales soaring 94% year-on-year to $35.1 billion, surpassing market expectations of $33.2 billion. The company’s net profit demonstrated remarkable growth, climbing 109% to reach $19.3 billion, significantly exceeding analysts’ forecasts of $17.4 billion.

Despite these impressive figures, Nvidia’s shares experienced a 2.3% decline in after-hours trading, dropping $3.31 to $142.58, as investors grappled with questions about the sustainability of such exceptional performance.

Jensen Huang, the company’s 61-year-old founder and chief executive, expressed confidence in the AI revolution, stating that “the age of AI is in full steam.” The company’s latest chips have garnered “incredible” demand, contributing to Nvidia’s optimistic forecast of $37.5 billion revenue for the next quarter.

The company’s meteoric rise from its humble beginnings in a San Jose Denny’s restaurant to a $3.6 trillion market valuation reflects its transformation from a gaming graphics specialist to an AI computing powerhouse. More than 40,000 companies now utilise Nvidia’s chips, including tech giants Amazon, Apple, Google, Tesla, Microsoft, and Meta Platforms.

The data centre division, representing the majority of Nvidia’s revenue, reported growth of 112% to $30.8 billion in the third quarter. While impressive, this marks a slowdown from the previous quarter’s 154% growth. The company’s next-generation Blackwell chip has generated substantial interest, with Chief Financial Officer Colette Kress describing demand as “staggering.”

The company’s stock value has surged by 200% this year, reflecting strong investor confidence in Nvidia’s position at the forefront of the AI computing revolution. However, the recent share price reaction suggests growing market scrutiny over the company’s ability to maintain its extraordinary growth trajectory.

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