Nvidia Stock Dips Despite 94% Revenue Surge

Nvidia reported robust third-quarter results with a 94% year-over-year increase in revenue, driven by strong demand for AI chips, especially the Blackwell series. Despite exceeding earnings expectations, Nvidia's stock fell due to supply constraints and investor concerns over maintaining growth momentum. The company forecasts fourth-quarter revenue slightly above analyst estimates, with ongoing high demand for Blackwell chips, indicating supply will not meet demand for several quarters. Missteps, including a design flaw in Blackwell chips, have added to production challenges. Nvidia's reliance on Taiwan Semiconductor Manufacturing Co. for chip production highlights potential vulnerabilities amid global supply chain constraints. Analysts remain optimistic about Nvidia's leadership in AI technology but caution about potential near-term challenges due to high expectations and market volatility.