Nvidia Corp. (NASDAQ:NVDA) delivered yet another exceptional quarterly performance on Tuesday, surpassing both revenue and earnings expectations, while its guidance exceeded projections. The chipmaker’s remarkable revenue growth, fueled by the AI boom, garnered attention from none other than Tesla CEO Elon Musk.
In the third quarter ending on Oct. 29, 2023, Nvidia reported revenue of $18.12 billion, reflecting a remarkable 206% year-over-year growth and a substantial 34% sequential growth.
What Happened: A user on X highlighted Nvidia’s extraordinary revenue leap, noting a 152% increase in just six months—from $7.19 billion in the first quarter of fiscal 2024 to $18.12 billion in the third quarter. Musk had a succinct one-word reaction to the post: “Wow.”
Wow
— Elon Musk (@elonmusk) November 21, 2023
Why It Matters: Even Tesla has not posted such a remarkable jump in the past few years, despite dominating EV sales, riding on its bestselling Model 3 and Model Y cars.
Nvidia stands at the forefront among the seven mega-cap tech stocks collectively known as the “Magnificent Seven.” Interestingly, Nvidia’s stock influenced the broader market during Tuesday’s regular session.
The significance of Nvidia extends to its role as a high-performance chip supplier to Tesla, crucial for the electric vehicle manufacturer’s self-driving technology and various AI applications. In August, Tesla AI Engineer Tim Zaman announced the launch of the Tesla AI 10,000 H100 cluster, dedicated to processing real-world datasets.
During the second-quarter earnings call, Musk emphasized Tesla’s heavy reliance on Nvidia hardware, expressing eagerness to acquire it as quickly as Nvidia could deliver. Musk also conveyed deep respect for Nvidia CEO Jensen Huang, acknowledging their remarkable achievements.
Interestingly, in a strategic move to mitigate potential supply-chain disruptions, Tesla has internally developed AI chips to power its advanced Dojo supercomputer.
Nvidia closed Tuesday’s session with a 0.92% decline at $499.44 and experienced a marginal additional dip of 1.74% to $490.75 in after-hours trading, as per Zenger News Pro data.
Produced in association with Benzinga