Nvidia delivered strong guidance for the current quarter after reporting fiscal third-quarter results that exceeded Wall Street expectations. Demand for its newest Blackwell AI chips continued to accelerate, supported by an increasingly competitive AI landscape. Shares of NVIDIA Corporation (NASDAQ: NVDA) rose more than 5% in after-hours trading following the report and earnings call, where CEO Jensen Huang downplayed fears of an emerging “AI bubble.”
For the quarter ending October 26, Nvidia reported adjusted earnings of $1.30 per share, up from $0.78 a year earlier. Revenue reached $57.01 billion, a 62% increase year-on-year. Analysts surveyed by Investing.com had forecast earnings of $1.25 per share and revenue of $54.8 billion.
Data Center Division Drives Growth
Nvidia’s data center segment—the company’s largest business and home to both its new Blackwell chips and previous-generation Hopper chips—saw revenue climb 66% to $51.22 billion, beating expectations of $49.09 billion.
CFO Colette Kress said Blackwell demand is creating unprecedented visibility into future revenue. She reiterated that Nvidia has “visibility on $500 billion in revenue from the beginning of the year to the end of 2026,” noting that half of the company’s longer-term opportunity will come from hyperscalers transitioning to accelerated computing and generative AI.
Blackwell sales were driven by major hyperscalers including Microsoft, Amazon, and Alphabet, with Huang saying demand was “off the charts,” and that cloud GPUs are effectively sold out. Kress added that the GB300 chip accounted for roughly two-thirds of Blackwell revenue in the quarter.
Nvidia’s networking business—another key growth area—saw revenue jump 162% year-over-year.
Gaming and Margins
The gaming division reported revenue of $4.27 billion, up 30% from last year. Gross margins fell slightly to 73.6%, but still came in above analyst estimates of 73.4%.
China, Geopolitics, and Product Mix
Kress said sales of Nvidia’s China-focused H20 chip totaled around $50 million in Q3. She noted that stricter U.S. export rules prevented “sizable purchase orders” for Hopper-based chips, and said the company was “disappointed” by the new restrictions but remains committed to working with regulators.
Huang Pushes Back on AI Bubble Concerns
CEO Jensen Huang addressed the growing debate over a possible AI bubble, arguing that Nvidia is witnessing a fundamentally different shift driven by three major transitions:
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The move from CPU-based computing to GPU-accelerated computing
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The rise of generative AI replacing classical machine learning
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The early shift toward agentic AI, which most industries have not yet adopted
Huang urged analysts to look beyond hyperscalers and consider the broader industrial demand for AI infrastructure. He highlighted Nvidia’s leadership in AI inference and said more customers are choosing Nvidia after evaluating competing platforms.
He also defended Nvidia’s involvement with OpenAI, saying its investment was intended “to expand our ecosystem and support their growth,” not to create circular financing.
Outlook Tops Expectations
Nvidia expects around $65 billion in fiscal fourth-quarter revenue, plus or minus 2%, surpassing analyst forecasts of $61.84 billion. Kress reaffirmed the company’s long-term revenue visibility of more than $500 billion through 2026, noting that uptake of agentic AI could add further upside.
