Nasdaq Composite: Nvidia’s Blowout Quarter Lifts Tech Sentiment and After-Hours Trade

Nvidia Pops After Another Blowout Quarter as AI Demand Stays Hot

Nvidia gave traders exactly what they were waiting for — another quarter that wasn’t just strong, but comfortably ahead of the bar Wall Street set. Shares climbed about 4% in after-hours trade as the company posted better-than-expected revenue and earnings and guided even higher for the current quarter. Bottom line: AI demand still isn’t cooling, and the smart money isn’t fighting it.

Does Nvidia Still Have the Firepower to Keep This Rally Going?

The company put up adjusted EPS of $1.30 versus the $1.25 estimate, with revenue landing at $57.01 billion against the expected $54.92 billion. That alone would’ve been enough to keep buyers leaning in. But the real kicker was guidance: Nvidia sees roughly $65 billion in fourth-quarter sales, comfortably above the $61.66 billion analysts penciled in. Traders like when a company beats. They love when it raises.

Net income surged 65% from a year earlier, hitting $31.91 billion. That kind of profitability tells traders one thing — the AI boom isn’t just a story. It’s printing real money.

What’s Driving the Surge in Sales?

Data center revenue is the engine here — and it’s running hot. Nvidia posted $51.2 billion in the segment, a 66% jump from last year and well above the $49.09 billion analysts expected. Of that, $43 billion came from compute, essentially its GPUs. Networking chipped in $8.2 billion as customers keep building ever-larger clusters to handle AI workloads.

CEO Jensen Huang didn’t shy away from the strength, calling demand for the company’s next-gen Blackwell chips “off the charts.” Finance chief Colette Kress added that Blackwell Ultra — the second-generation version — has already become the top seller. Traders hear that and assume one thing: more orders are coming.

And for anyone worried that hyperscalers might start tapping the brakes, Huang threw cold water on those fears, noting that cloud GPUs are sold out. Buyers are still stepping in.

How Are Legacy Segments Holding Up?

They’re not leading the story, but they’re adding fuel. Gaming revenue rose 30% to $4.3 billion. Professional visualization climbed 56% to $760 million, pushed along by interest in the newly launched DGX Spark AI desktop. Robotics and automotive brought in $592 million, up 32% from last year — another sign that Nvidia’s reach keeps widening.

The company also returned cash to shareholders with $12.5 billion in buybacks and $243 million in dividends, which never hurts sentiment.

What’s the Market Watching Next?

For traders, it’s simple: AI demand. If orders stay strong and supply holds up, buyers will likely keep supporting the stock on dips. Nvidia just showed it can clear the bar with room to spare — now the market wants to see whether the next quarter repeats the pattern. The earnings beat helps, but it’s the guidance that keeps the bullish case intact.