30s Summary

Nvidia’s Q3 profits increased by 17% from Q2 and 94% from the previous year, hitting record levels. The company attributes this success to its AI-first strategy, and CEO Jensen Huang believes the continued AI boom will keep Nvidia in demand. A large part of Nvidia’s profits come from its data centres that are driving the AI revolution. The company offers powerful computing platforms and software for AI development and agentic AI systems. Despite the impressive profits, Nvidia’s shares slipped 2.5% in after-hours trading.

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Nvidia’s CEO, Jensen Huang, says the company is all in on an AI-first strategy, as it hits record profits in Q3. “The AI boom is going strong, and that’s why everyone’s shifting to Nvidia computing,” stated Huang on 20th November as the company announced its quarterly profits increased by 17% from Q2 and a whopping 94% from a year ago.

A big chunk of the profits, $30.8 billion (up 112% from last year) comes from Nvidia’s data centres, which are fuelling the AI revolution. Huang predicts a strong demand for AI computing tech, projecting Q4 revenue of $37.5 billion.

“AI’s revamping all industries and every company across all nations. Businesses are jumping on board this wave of AI to transform their operations,” he explained.

“We’re seeing more and more AI-focused companies popping up. And of course, the latest hype is enterprise adoption of AI”, added Huang during the Q3 earnings call.

As the world’s biggest company with a market capitalization of $3.6 trillion, Nvidia is putting itself smack in the middle of the AI revolution.

It hopes to do this by offering high-powered computing platforms like Hopper and Blackwell GPUs, developing AI software that supports intricate AI development, and creating tools for firms to build and rollout AI systems that work on their own.

This type of AI, called agentic AI, refers to AI systems that can display goal-oriented behaviour and make decisions on their own. They can comprehend complex objectives, break down responsibilities into manageable parts, make autonomous decisions and actions with little human intervention, and carry out multi-step reasoning processes. These AI systems can adapt to change and choose actions to meet objectives in unpredictable or fluctuating environments. But Nvidia isn’t the only one aiming for leadership in agentic AI. Microsoft has also launched autonomous AI agents for its AI assistant Copilot and other products.

Microsoft is teaching a new batch of AI tools how to “act for us across our work and personal lives,” said Microsoft CEO Satya Nadella at a conference on Nov. 20.

Interestingly, Nvidia’s stock did not react positively to the high-revenue report, slipping 2.5% to $142 in after-hours trading, as per Google Finance. The lead AI tokens also didn’t rise due to Nvidia’s results and were mostly down at the time of writing unless for Bittensor (TAO) which bucked the trend.