Chipmaking giant Nvidia eased the fears of a potential AI bubble after posting quarterly results that exceeded already stretched forecasts. The worldâs most valued publicly traded company reported third-quarter revenue of $57.01 billion, up 62% from a year earlier and above analystsâ estimates of roughly $54.9 billion. Adjusted earnings were $1.30 per share, topping the $1.25 consensus. Net income surged 65% to $31.91 billion for the period as well.
Nvidia projected fourth-quarter revenue of about $65 billion, well ahead of the $61.66 billion analysts had anticipated. Shares jumped more than 4% in extended trading after a 3% gain earlier in the day, providing relief to a market that has been rattled by questions about whether AI-driven capital spending is sustainable. Currently, the companyâs GPUs underpin the compute clusters used by nearly every major AI developer and cloud provider, including Microsoft, Amazon, Google, Meta, Oracle and OpenAI. With a market value of roughly $4.5 trillion, Nvidiaâs results influence not only the semiconductor sector but also broader sentiment toward tech valuations.
Huang said demand for the companyâs new Blackwell architectureâparticularly the GB300 Blackwell Ultra chipsâwas âoff the charts,â and that cloud GPUs were âsold outâ across providers. Nvidia also reiterated that compute requirements for both training and inference continue to climb at a compounding pace as companies deploy increasingly sophisticated foundation models and agentic applications. One blemish in the quarter was China. The US export restrictions barred Nvidia from shipping its most advanced Blackwell chips to the region. Although the company received licenses for the H20, a down-spec alternative, Kress said revenue from the chip totaled only $50 million.
Nvidiaâs data center division, the engine of its AI business, generated $51.2 billion in revenue, up 66% year-over-year and above the Streetâs ~$49 billion estimate. The company said $43 billion came from compute productsâchiefly GPUsâwhile $8.2 billion came from networking hardware that links thousands of chips together in large clusters. Finance chief Colette Kress said Blackwell Ultra is now the companyâs best-selling chip family, overtaking earlier versions of the architecture. She added that Nvidia has visibility into more than five million GPUsâ worth of announced AI factory and infrastructure projects, spanning cloud hyperscalers, national governments, industrial conglomerates and supercomputing centers. Gaming revenue reached $4.3 billion, up 30% from a year earlier. Professional visualization sales rose 56% to $760 million, aided by demand for DGX Spark, Nvidiaâs AI-focused workstation. The smaller automotive and robotics segment brought in $592 million, up 32%.
Nvidiaâs financial report comes at a time when concerns over AI valuations had helped pull the S&P 500 lower for four consecutive days, with investors questioning whether tech giants would continue spending heavily on AI hardware. Microsoft, Alphabet, Amazon and Meta recently raised their capex forecasts to a combined $380 billion for 2025, largely directed at data-center buildout, intensifying scrutiny of whether the returns will materialize. Nvidiaâs resultsâand its guidanceâsuggest the build cycle is far from peaking, though. In addition to this, the company repurchased $12.5 billion of its own stock and paid $243 million in dividends. Huang said Nvidia has $500 billion in AI chip orders already booked for 2025 and 2026, and Kress noted that number will âprobablyâ grow as additional deals are finalized.
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