[Click eStock] "NVIDIA Still Plays a Key Role in the AI Ecosystem"

Korea Investment & Securities analyzed on the 22nd that it is important to note that NVIDIA's role as the most crucial player within the artificial intelligence (AI) ecosystem has not changed.

Yonhap News

NVIDIA announced its third-quarter results, reporting revenue of $35.08 billion (approximately 49.119 trillion KRW), a 93.6% increase compared to the same period last year, and earnings per share (EPS) of $0.81 (approximately 1,134 KRW), up 102.5% year-over-year. Both figures exceeded market expectations by 6% and 9%, respectively. Data center revenue reached $30.77 billion, marking a 17% increase from the previous quarter and a 112% rise year-over-year, setting a new record once again. The guidance for the next quarter projects median revenue of $37.5 billion and a gross margin of 73.5%.

Researcher Cha Min-sook from Korea Investment & Securities stated, "Blackwell has already achieved sales exceeding expectations this quarter, and it is expected to continue to experience strong demand surpassing supply," adding, "Blackwell is already in full mass production, which dispels market skepticism."

She continued, "According to channel checks, NVIDIA is urgently producing both Blackwell and Hopper at TSMC," explaining, "In this case, NVIDIA pays TSMC 1.5 times the original wafer price. Nevertheless, the fact that gross margin and EPS are exceeding guidance supports that NVIDIA still maintains supplier dominance."

Researcher Cha maintained a positive view on NVIDIA. She analyzed, "Although profit margins may temporarily decline due to a significantly shortened product cycle compared to before, the company is confident that this will be quickly recovered," and emphasized, "It is important to note that NVIDIA's role as the most important player within the rapidly expanding AI ecosystem remains unchanged."