Nvidia records $57 billion Q3 revenue, quieting AI bubble concerns

Nvidia founder and CEO Jensen Huang presented a strong outlook following the company's third-quarter earnings report.

Nvidia reported revenue of $57 billion in the third quarter, a 62% increase compared to the same quarter last year. Net income on a GAAP basis reached $32 billion, up 65% year-over-year. Both revenue and profit results exceeded analyst expectations.

The revenue strength is due primarily to the data center business. Revenue from Nvidia's data center segment was $51.2 billion, marking a record. This figure represents a 25% increase from the previous quarter and a 66% rise from a year ago. The remaining $5.8 billion in revenue came from Nvidia's gaming business ($4.2 billion), followed by professional visualization and automotive sales.

Nvidia CFO Colette Kress stated the data center business growth is driven by accelerated computing, powerful AI models, and agentic applications. Kress noted the company announced AI factory and infrastructure projects totaling 5 million GPUs during the quarter.

Blackwell Ultra, a GPU released in March, has shown particular strength and is now the leading product within the company. Earlier versions of the Blackwell architecture also maintained strong demand.

Huang stated sales of Blackwell GPU chips "are off the charts."

"Blackwell sales are off the charts, and cloud GPUs are sold out," Huang said. "Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We’ve entered the virtuous cycle of AI."

Kress did note a challenge with shipments of the H20 data center GPU, designed for generative AI and high-performance computing, totaling 50 million. This result was influenced by the inability to sell to China.

"Sizable purchase orders never materialized in the quarter due to geopolitical issues and the increasingly competitive market in China," Kress said.

Nvidia forecasts continued growth, projecting a revenue of $65 billion for the fourth quarter, which boosted the share price by more than 4% in after-hours trading.

Huang dismissed the concept of an "AI bubble" during the earnings call.

"There’s been a lot of talk about an AI bubble," Jensen said. "From our vantage point, we see something very different."