Nvidia shares saw volatile trading on Thursday as investors digested the U.S. chipmaker’s Q3 earnings report. Initially rising, the stock later fell 1.5% in late-morning trading, continuing a downward trend seen in premarket activity. Despite the movement, Nvidia's quarterly results surpassed expectations on both revenue and earnings, with revenue reaching $35.08 billion—a 94% YoY increase—beating the $33.16 billion forecast. Adjusted earnings per share stood at 81 cents, also above analyst estimates. The broader semiconductor sector responded to Nvidia’s swings, with rival AMD falling 1% while Qualcomm and Intel gained 1% and 1.2%, respectively.

Nvidia continues to dominate the market for GPUs powering advanced AI models like OpenAI's ChatGPT. However, its impressive growth has moderated compared to previous quarters, where revenue surged as high as 265%. Analysts, including William de Gale of BlueBox Asset Management, noted that sky-high GPU demand has become a baseline for Nvidia, raising concerns about sustainability. Despite these risks, the company’s forthcoming Blackwell chip, which CEO Jensen Huang says faces demand exceeding supply, is creating buzz and anticipation in the market.