Nvidia’s Q3 Earnings Surge Amid Booming AI Demand

Nvidia, the world’s largest publicly traded company by market cap, reported exceptional third-quarter results, driven by robust demand for its AI-focused chips. For the quarter ending October 27, revenue soared to $35 billion, a 94% increase from $18 billion last year. It also beats analyst’s estimates of $33.2 billion as shown below.

• The chipmaker’s net income more than doubled to $19 billion, compared to $9 billion in Q3 2023. Adjusted earnings per share stood at 81 cents, surpassing Wall Street’s expectations of 75 cents per share.

Nvidia’s data center revenue reached $30.8 billion, marking a 112% year-over-year growth. This was fueled by the Hopper platform’s popularity for AI applications, including large language models and generative AI tools. With gaming revenue also rising 15% to $3.3 billion, Nvidia continues to solidify its dominance across multiple sectors, driving the future of AI innovation.

CEO Jensen Huang highlighted the company’s pivotal role in AI adoption, stating: 

“The age of AI is in full steam, propelling a global shift to Nvidia computing.” 

Looking ahead, Nvidia anticipates Q4 revenue of $37.5 billion, slightly above analysts’ estimates of $37.09 billion. The company also provided updates on its next-gen Blackwell AI chips, set for production shipments in 2025. However, supply constraints are expected to persist through 2026, according to Chief Financial Officer Colette Kress.

Nvidia’s stock, which has surged 195% year-to-date, dipped 1% in after-hours trading despite its strong quarterly performance. Analysts remain optimistic though, emphasizing Nvidia’s leadership in AI. 

Wedbush analyst Dan Ives described the results as a testament to the ongoing “AI Revolution,” projecting the company’s market cap to hit $4 trillion by 2025.

Emerging as a global tech leader, Nvidia captivated investors with its market growth and revolutionary advancements in AI and computing. 

• RELATED: Nvidia’s Record Earnings Overshadow New Standard in Chip Energy Efficiency

However, as the chipmaker reaches record-breaking valuations, the spotlight on its environmental practices and sustainability commitments has intensified. The company faces increasing scrutiny over its efforts to address climate change and reduce its substantial energy footprint.

Behind the Chips: The Carbon Cost of AI

AI and chip manufacturing are energy-intensive processes that contribute to greenhouse gas emissions throughout the supply chain. From mining rare metals to the high-temperature ovens required during chip fabrication, the production of advanced semiconductors is resource-heavy.

According to researchers, information and communications technologies—including data centers—are responsible for 1.8% to 2.8% of global GHG emissions. This figure is projected to rise significantly as AI adoption accelerates. 

The International Energy Agency (IEA) estimates that the sector’s electricity consumption could double by 2026, potentially consuming 4% of global electricity—an amount comparable to Japan’s entire energy usage.

Nvidia’s Sustainability Initiatives

In response to these challenges, Nvidia has outlined a series of sustainability goals in its 2024 Corporate Responsibility Report. The company is committed to achieving 100% renewable electricity for all its offices and data centers by fiscal year 2025. This ambitious target reflects Nvidia’s dedication to reducing Scope 1 and Scope 2 emissions, which cover its direct operational carbon footprint.

Total FY2024 GHG emissions is 3,692,423 MTCO2e, with the following breakdown per source:

For Scope 3 emissions, which comprise most of the company’s GHG footprint and include those generated by its supply chain, Nvidia is working with suppliers to adopt science-based emission reduction targets. By 2026, Nvidia aims to engage suppliers responsible for at least 67% of its Scope 3 Category 1 emissions, encouraging them to align with the company’s climate standards.

While Nvidia has made significant strides, its lack of a comprehensive net zero strategy has drawn criticism. The company’s report highlights its greenhouse gas emissions and energy use—73,017 metric tons of CO2 equivalent and 496,901 megawatt hours, respectively, in 2023—but provides limited detail on how it plans to reach net zero.

Innovations Powering Nvidia’s Green Goals

Nvidia’s innovations, such as the Blackwell GPUs and its Earth-2 platform, are pivotal in reducing the environmental impact of AI and computing. The Blackwell GPUs consume up to 20 times less energy than traditional CPUs for complex workloads, while the Earth-2 platform offers advanced climate modeling capabilities, using 3,000 times less energy than conventional systems.

Liquid cooling is another area where Nvidia is making strides. Direct-to-chip liquid cooling technology significantly enhances data center efficiency, reducing water consumption and energy demand. This system aligns with Nvidia’s broader strategy to improve the sustainability of its operations and products.

Additionally, Nvidia’s Omniverse platform enables businesses to create digital twins—virtual replicas of physical operations. This innovation helps industries optimize energy use, reduce waste, and cut carbon emissions. For example, Wistron, a manufacturing company, used Nvidia’s Omniverse to save 120,000 kilowatt-hours of electricity annually and reduce CO2 emissions by 60,000 kilograms.

Green AI: A Sustainable Path Forward

The rise of AI has brought immense opportunities but also increased energy demands. Deloitte’s report on AI’s environmental footprint predicts that global data center power demand could reach 1,000 terawatt-hours (TWh) by 2030 and potentially 2,000 TWh by 2050. 

Nevertheless, AI can significantly contribute to climate-neutral economies, as outlined in Deloitte’s study on Green AI. This concept focuses on minimizing AI’s environmental footprint by adopting renewable energy and optimizing hardware design.

Industry leaders have spearheaded Green AI efforts, particularly in accelerated computing. This approach relies on specialized hardware like GPUs, enabling faster, energy-efficient processing compared to CPUs, which handle tasks sequentially.Source: “Powering artificial intelligence” report by Deloitte Global

Notably, Nvidia is among the tech companies exploring nuclear energy as a sustainable solution to meet the growing energy needs of AI and data centers. Nuclear power provides a reliable, compact, and low-carbon energy source that can sustain the rapid expansion of AI technologies while mitigating their environmental impact. 

The Path Ahead

The current COP29 discussions highlighted the need to power AI infrastructure with renewable energy and establish ethical guidelines for its use. By prioritizing environmental innovation, industries can leverage AI to foster a more sustainable and climate-conscious future.

Nvidia has demonstrated a commitment to energy-efficient innovations and renewable energy adoption, but a clear roadmap to net zero is highly significant. 

By integrating sustainability deeper into its business strategy, Nvidia has the potential to lead not only in technology but also in climate action, setting a benchmark for the industry and ensuring its long-term success.

• RELATED: “Powering artificial intelligence” report by Deloitte Global
• READ MORE: NVIDIA’s $279 Billion Stock Crash | Can The GPU Giant Rebound?

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Duke University achieved carbon neutrality in 2024, marking a significant milestone in its sustainability journey. However, achieving this status does not mean the university eliminated all its emissions. 

Instead, it represents a strategic balance between reducing emissions and offsetting those that remain. In Duke’s case, this included a $4 million investment in carbon offsets to neutralize its greenhouse gas (GHG) emissions. 

Duke’s Path to Carbon Neutrality: Balancing Reductions and Offsets 

Duke University, under the American College and University Presidents’ Climate Commitment, pledged to achieve carbon neutrality across its emissions-generating activities. Its Climate Action Plan (CAP) categorizes emissions into three scopes: 

Duke’s approach aligns with GHG accounting standards from the World Resources Institute, ensuring comprehensive tracking and reduction strategies for all emission sources. The university has significantly cut GHG emissions through various levers including: 

• Eliminating coal use, 
• Boosting building and utility efficiency, and 
• Reducing commuting emissions. 

Future reductions are planned through off-site solar investments and campus upgrades like steam-to-hot-water conversions and heat recovery chillers. Duke remains on track to achieve its 2030 emissions goals. 

However, 2023 emissions rose 9% compared to 2022, primarily due to air travel nearing pre-pandemic levels. Despite this, energy-related emissions are down 41% since 2007, and 2023 levels remain 21% lower than in 2019. 

Duke’s progress toward carbon neutrality began in 2007 when it launched an institution-wide effort to measure and reduce emissions. By fiscal year 2022, Duke had reduced its emissions by 43%, with plans to reach a 45% reduction by its 2024 deadline. 

• However, emissions rose slightly, requiring Duke to offset nearly 69% of its 2007-level emissions instead of the planned 55%.

This reliance on carbon offsets underscores a critical reality: achieving net-zero emissions without offsets is nearly impossible for large institutions. Matthew Arsenault, Duke’s assistant director of carbon and sustainability operations, highlighted that: 

“No institution, no company is going to be carbon neutral without using carbon offsets. There’s literally no way to reduce your emissions actually to zero.” 

Carbon offsets provide a mechanism to balance emissions from essential activities, such as powering campus buildings and transportation. These activities, while minimized through efficiency measures, can only be partially eradicated. 

How Carbon Offset Credits Work 

Carbon offsets allow institutions to balance emissions by funding projects that either reduce GHG emissions or remove existing emissions from the atmosphere. Institutions like Duke use these tools to purchase carbon accounting units traded on carbon markets. These markets enable organizations to buy and sell surplus credits to meet their sustainability and net zero goals. 

For Duke, offsets became a practical and ethical way to achieve carbon neutrality, given the current limitations of emission reduction technologies. 

Carbon Offsets in Action: The Key to Duke’s Carbon Neutrality

Duke’s approach to carbon offsets has evolved over the years. In 2009, the university launched the Duke Carbon Offsets Initiative (DCOI), the first university-based program of its kind. This initiative focused initially on developing new offset projects, such as a methane-capture effort at a North Carolina hog farm, where methane was converted into usable electricity instead of being released into the atmosphere. 

• RELATED: COP29: Launch of “An Eye on Methane”, Will Pledges Turn into Progress?
  

Other early projects included residential energy efficiency upgrades, urban tree plantings, and solar installations. These efforts were designed to both reduce GHG emissions and align with Duke’s broader sustainability values. 

As the 2024 carbon neutrality deadline approached, Duke University shifted its strategy to focus on larger, externally sourced projects to meet its offset needs.

Almost 80% of Duke’s carbon offset portfolio consisted of projects targeting ozone-depleting refrigerants, which contain potent GHGs that can leak into the atmosphere. These projects, developed in collaboration with international partners, represented a significant step in reducing emissions from refrigerants. 

The remaining offsets focused on methane capture from dairy farms and landfills, similar to Duke’s earlier hog farm project. By investing in these projects, Duke ensured its offsets addressed emissions effectively and sustainably. 

Ensuring Quality and Accountability 

Duke’s commitment to sustainability extends beyond simply purchasing offsets. The university employs a rigorous verification process to ensure the quality and ethical standards of its investments. This process involves collaboration with Ruby Canyon Environmental, a registered verifier on carbon markets, to vet prospective offset projects. 

To guide decision-making, Duke developed a comprehensive evaluation tool that includes detailed questions about each project. Criteria such as “additionality” (ensuring the emissions reductions would not occur without the project) and “permanence” (long-term commitment to emissions reductions) are prioritized. 

Projects that meet these standards are further reviewed by an advisory committee of faculty and students before purchase. Fewer than 10% of potential projects pass Duke’s initial evaluation, highlighting the university’s commitment to investing in high-impact and high-integrity carbon offsets. 

What’s Next? Duke’s Plan Beyond Neutrality

While offsets played a key role in Duke’s 2024 achievement, the university recognizes the importance of continuing to reduce its emissions. Efforts are ongoing to expand energy efficiency measures on campus and integrate more renewable energy sources into operations. 

Duke University’s carbon footprint will significantly decrease by mid-2025 when three off-campus solar facilities come online. They have a combined capacity of 101 megawatts. These projects will provide about 50% of the campus’s electricity and contribute renewable energy to North Carolina’s grid for decades. 

Additionally, Duke is exploring ways to include its health system and international campuses, such as Duke Kunshan University, in future emissions tracking. 

The university is now determining its “next-generation” climate goals, focusing on sustaining its carbon-neutral status and further reducing its offset dependency. This includes exploring innovative carbon offset projects, expanding renewable energy use, and encouraging campus-wide engagement in sustainability initiatives. 

Carbon offsets will remain an essential tool in the university’s strategy, but Duke aims to rely on them less as it continues to refine its emissions reduction efforts. With its comprehensive approach and commitment to quality, Duke serves as a model for other institutions seeking to balance sustainability goals with the practical realities of carbon offsetting.

• READ MORE: How Top U.S. Universities Cut Their Carbon Emissions to Help Fight Climate Change

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Lithium is an essential component in lithium-ion batteries which are mainly used in EVs and portable electronic gadgets. Often known as white gold due to its silvery hue, it is extracted from spodumene and brine ores. After mining it is processed into:

• Lithium carbonate is commonly used in lithium iron phosphate (LFP) batteries for electric vehicles (EVs) and energy storage.
• Lithium hydroxide, which powers high-performance nickel manganese cobalt oxide (NMC) batteries.

Diversifying Lithium Supply

According to IRENA’s 2024 edition of the Critical Minerals Report, last year global lithium production reached 0.96 million metric tons (Mt) of lithium carbonate equivalent (LCE) which could suffice short- to medium-term demand. But beyond 2030, recycling will play a crucial role in lithium supply, with 0.4 Mt of LCE expected to be available annually by 2035.

Lithium supply and demand in 2023 and 2030

The report says that at present lithium mining is highly concentrated, with over 90% sourced from Australia, Chile, and China. This has also led to global supply chain vulnerabilities.

However, efforts to diversify production are underway, with countries like the Democratic Republic of Congo, Germany, Ghana, and Portugal increasing their investments in lithium exploration. These initiatives could help reduce dependence on a few dominant suppliers and spread mining activities across the globe.

What’s Driving Lithium Demand?

Even though we have reported earlier, the answer remains the same. It is the EV market that’s primarily driving lithium demand. It’s projected to form 82% of total demand by 2030 which is a significant increase from 62% in 2022.

Other applications, such as energy storage systems, electronics, and industrial uses, are expected to contribute between 0.43 and 0.60 Mt of demand annually by 2030.

Meeting this growing demand will require a mining expansion, diversified supply chains, and robust recycling systems to ensure a steady and sustainable lithium supply for the future.

Lithium demand from EV batteries and other applications, 2022 and 203

• READ MORE: Global Lithium and Battery Trends: Top Stories You Need to Know! 

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Li-FT Power: Exploring & Developing Hard Rock Lithium Deposits In Canada

Li-FT Power Ltd. (TSXV: LIFT) recently announced its first-ever National Instrument 43-101 (NI 43-101) compliant mineral resource estimate (MRE) for the Yellowknife Lithium Project (YLP), located in the Northwest Territories, Canada.

An Initial Mineral Resource of 50.4 Million Tonnes at Yellowknife.

This maiden estimate is a major milestone for the company and marks a significant step forward in the project’s development. Li-FT Power’s upcoming mineral resource is expected to further solidify Yellowknife as one of North America’s largest hardrock lithium resources.

Click to learn more about lithium and Li-FT Power Ltd. >>

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EV Battery Production Set to Triple by 2030

• Lithium-ion battery production is expected to be 3X by 2030, increasing from 2,000 GWh/year in 2023 to 7,300 GWh/year.
• This growth will meet the EV battery demand of 4,300 GWh/year by 2030 under a 1.5°C climate scenario.

This projected growth includes operational factories, construction projects, and announced plans. However, some projects are still waiting for finalizing investments. These batteries won’t just power EVs; they’ll also support rising demand from energy storage systems and portable electronics.

As EV sales accelerate, the demand for EV batteries is increasing rapidly. Passenger cars and trucks are driving most of this demand due to their high sales volumes and the large battery sizes required for trucks. EV battery demand is expected to exceed 4,300 GWh annually by 2030, representing a five-fold increase compared to 2023.

In addition to EVs, other sectors like battery energy storage systems (BESS) are also increasing battery demand. BESS demand is projected to grow six-fold between 2023 and 2030, but EV batteries will account for nearly ten times more demand by the decade’s end.

What Makes Up an EV Battery?

An EV battery is a pack of battery cells stacked together, comprising the following components:

• Anode: Typically made of graphite.
• Cathode: Often composed of lithium metal oxides.
• Electrolyte: A liquid or solid lithium salt.

These components work together to move lithium ions during charging and discharging. This process enables energy storage and release, powering the vehicle.

Battery system components and internal components of a battery cell

EV Battery Chemistries: A Closer Look

The cathode and anode represent most of the critical materials in an EV battery. Cathode types vary and include, Nickel Manganese Cobalt Oxides (NMC), Nickel Cobalt Aluminum Oxides (NCA), Nickel Manganese Cobalt Aluminum Oxide (NMCA), Lithium Iron Phosphate (LFP), and Lithium Manganese Iron Phosphate (LMFP). All these chemistries rely on lithium, but their compositions differ.

Now speaking of EV battery anode, pure graphite is the most widely used material. EV batteries typically use a mix of natural and synthetic graphite. The ratio depends on the cost, performance needs, and battery type.

Copper is another key material in EV anodes. Copper foils act as current collectors, playing a vital role in the battery’s operation.

These variations impact the choice of materials, cost, and environmental footprint and fuel the demand for critical minerals in the EV battery industry.

Estimated average critical material composition of selected EV battery packs

Asia-Pacific Leads in EV Battery Production

The Asia-Pacific region currently dominates global battery production, holding about 75% of capacity. By 2030, this share is expected to dip slightly to 70%, as other regions ramp up production. Europe is projected to see the fastest growth, with a 10X increase in capacity between 2023 and 2030.

This rapid expansion highlights the global push to support EVs and other technologies, ensuring the world moves closer to a cleaner energy future.

Regional lithium-ion battery manufacturing capacity in 2023 and planned capacity for 2030

Source: Data and Visuals from IRENA: Critical materials: Batteries for electric vehicles

• SEE MORE: Global EV Trends: Growth, Challenges, and the Future of Electric Mobility • Carbon Credits

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Nuclear fusion energy is clean, safe, and sustainable. It combines lighter atoms to release vast energy without high-level radioactive waste. Commonwealth Fusion Systems (CFS), the Massachusetts-based fusion giant aims to revolutionize the clean-energy space by generating infinite carbon-free power with its flagship fusion project SPARC. Since its inception in 2018, the company has secured over $2 billion in funding, which makes it the world’s largest private fusion company.

Recently CFS announced that it has built and tested a groundbreaking electromagnet, the Central Solenoid Model Coil (CSMC). This scientific innovation brings the company closer to using clean fusion energy for the grid. 

Commonwealth Fusion Systems’ Mighty Magnet Makes Fusion Feasible

The CSMC test, combined with the already tested (in 2021) and successfully existing Toroidal Field Model Coil (TFMC), proves the functionality of two essential high-temperature superconducting (HTS) magnets. These magnets are crucial for SPARC, the tokamak machine which is designed to demonstrate net fusion energy.

Additionally, the TFMC validated magnets for steady electrical currents, while the CSMC confirmed the capability for pulsed electrical currents.

Brandon Sorbom, Co-Founder and Chief Science Officer noted,

“This is an important milestone on the road to commercialization. When we hit the button and put current through the magnet, it performed like a champ and hit all its major test objectives. The fact that our team was able to develop this technology from benchtop to a fully integrated, at-scale superconducting magnet in just a couple of years is huge.”

The press release also mentioned that CFS developed PIT VIPER which is an advanced HTS cable technology. It aids in powering SPARC’s central solenoid (CS) and poloidal field (PF) magnets. PIT VIPER’s innovative design minimizes heating during rapid current changes, enabling high-performance magnets.

The CSMC Model

source: CFS

Key test results from the Central Solenoid Model Coil include:

• Handling electrical currents up to 50,000 amps, enough to power 250 modern homes.
• Generating a magnetic field of 5.7 teslas—100,000 times Earth’s magnetic strength.
• Releasing energy rapidly at 4 teslas per second, validating SPARC magnet behavior.
• Storing a record 3.7 megajoules of energy, equivalent to five pickup trucks traveling at 60 mph.
• Using fiber optics to detect overheating events, ensuring magnet safety.

CFS and MIT: Partners in Fusion Progress

The successful CSMC test showcases CFS’ leadership in magnet technology. The company scaled up PIT VIPER cable production and demonstrated its ability to design and operate magnets under SPARC-like conditions.

Experts from CFS and the Massachusetts Institute of Technology (MIT) collaborated on this project and conducted the tests at MIT’s Plasma Science & Fusion Center (PSFC). Moving on, CFS plans to produce the first plasma with SPARC in 2026 and achieve net energy soon after. The company’s first power plant, ARC, is expected to deliver electricity to the grid in the early 2030s.

Ted Golfinopoulos, one of the principal investigators at MIT for the CSMC project said, 

“Where the mission of the TFMC was to demonstrate a steady strength, the CSMC needed to demonstrate speed.”

He also hailed the collective effort of the amazing team by remarking,

“Hundreds of hands have touched this coil, from its inception on the drafting board to its long and complicated test program. The ingenuity, perseverance, and heart shown by this close-knit team was as impressive as the coil that sprang from their labors.”

Notably, the U.S. Department of Energy’s Advanced Research Projects Agency–Energy (ARPA–E) and Fusion Energy Sciences (FES) programs supported the innovation.

• READ MORE: What Does the U.S. Need to Triple Its Nuclear Capacity by 2050? DOE Explains…

Commonwealth Fusion Systems Aims to Transform Coal Plants with Nuclear Fusion

From a recent Bloomberg report, we discovered that Tokamak designs were first developed in the 1950s and they already demonstrated the ability to trigger fusion reactions. However, their practical and commercial viability is still questionable. This is because these traditional electromagnets require a humongous amount of power to shift them from scientific experiments to practical energy solutions.

CFS’s blueprint electromagnets that we described earlier can keep the plasma under control and maintain the continuity of the fusion reaction. This is why Bob Mumgaard, CEO of Commonwealth Fusion Systems expressed his satisfaction, saying that this was the last major technology hurdle they needed to clear.  

The report further highlighted CFS’s plans to replace fossil fuel boilers with fusion power by harnessing the same energy source as the sun. The company is already assessing old coal and natural gas plant sites as potential locations for building its first commercial fusion systems. However, their demonstration device is still in the developmental phase.

Nonetheless, CFS is confident of its success and the shift from fossil fuels to clean, carbon-free energy using fusion.

The recently published Global Fusion Industry Report reveals a rapidly intensifying race to commercialize fusion energy. Currently, 45 companies are advancing diverse technologies and have collectively raised over $7 billion. Public-private partnerships are playing a pivotal role in the fusion development process and have brought a remarkable 50% increase in funding.

The investment figures are shown below:

Source: 2024 Global Fusion Industry Report

Industry reports and expert opinions confirm that the fusion industry is still in its development phase. Building commercial nuclear fusion systems will take time, but progress is accelerating with increased investments and scientific breakthroughs. In this space, Commonwealth Fusion Systems is driving the transition toward a global clean energy future with its groundbreaking innovations.

Sources:

1. Commonwealth Fusion Systems Magnet Success Propels Fusion Energy Toward the Grid | Commonwealth Fusion Systems
2. Nuclear Fusion Leader Wants to Build on Site of Old Coal Plants – BNN Bloomberg

• MUST READ: $7.1 Billion Investment Fuels Fusion Commercialization. Is Fusion the Future Energy? 

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