Nvidia's Earnings Soar, Stock Hits Record High

Nvidia reported third quarter earnings that exceeded Wall Street expectations, with adjusted earnings per share of $4.02 on revenue of $18.12 billion. The company's revenue guidance for the current quarter also surpassed estimates, but the stock market reaction was muted due to concerns over new restrictions on chip exports to China. Nvidia expects a significant decline in sales to China and other affected destinations in the fourth quarter of fiscal 2024, but believes this will be offset by strong growth in other regions. The chipmaker's data center revenue, driven by demand for AI chips, reached $14.51 billion, while gaming revenue came in at $2.86 billion. Nvidia's stock fell about 1% after hours following the earnings report.