Nvidia’s record $57B revenue and upbeat forecast quiets AI bubble talk

Nvidia founder and CEO Jensen Huang struck a bullish tone within the firm’s third-quarter earnings. And based mostly on the corporate’s outcomes, there could also be cause to.

Nvidia reported income of $57 billion within the third quarter, 62% larger in comparison with the identical quarter final 12 months. The corporate’s internet earnings on a GAAP foundation was $32 billion, 65% larger year-over-year. Each income and revenue outcomes beat Wall Avenue expectations.

The income image exhibits an organization booming thanks largely to its information heart enterprise. Income generated by Nvidia’s information heart enterprise was a report $51.2 billion, up 25% from the earlier quarter and up 66% from a 12 months in the past. The remaining $5.8 billion in income got here from Nvidia’s gaming enterprise with $4.2 billion, adopted by gross sales in skilled visualization and automotive.

Nvidia’s CFO Colette Kress famous in a press release to shareholders its information heart enterprise has been fueled by an acceleration of computing, highly effective AI fashions, and agentic purposes. In the course of the firm’s Q3 name, Kress stated on this previous quarter, the corporate introduced AI manufacturing unit and infrastructure initiatives amounting to an combination of 5 million GPUs.

“This demand spans each market, CSPs, sovereigns, fashionable builders enterprises and tremendous computing facilities, and contains a number of landmark construct outs,” Kress stated.

Blackwell Extremely, a GPU unveiled in March and out there in a number of configurations, has been significantly robust and is now the chief throughout the firm. Earlier variations of the Blackwell structure additionally noticed continued robust demand, in keeping with the corporate.

Huang stated gross sales of its Blackwell GPU chips “are off the charts.”

“Blackwell gross sales are off the charts, and cloud GPUs are offered out,” Huang stated within the firm’s Q3 earnings assertion. “Compute demand retains accelerating and compounding throughout coaching and inference — every rising exponentially. We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling quick — with extra new basis mannequin makers, extra AI startups, throughout extra industries, and in additional international locations. AI goes all over the place, doing all the things, suddenly.”

Kress did notice that the corporate’s shipments of H20, an information heart GPU designed for generative AI and high-performance computing, have been 50 million, a disappointing outcome as a consequence of its incapacity to promote to China.

“Sizable buy orders by no means materialized within the quarter as a consequence of geopolitical points and the more and more aggressive market in China,,” Kress famous on the earnings name. “Whereas we have been disenchanted within the present state that forestalls us from transport extra aggressive information heart compute merchandise to China, we’re dedicated to continued engagement with the U.S. and China governments, and can proceed to advocate for America’s capacity to compete all over the world.”

Importantly, Nvidia is forecasting extra development with a projected income of $65 billion within the fourth quarter, serving to push its share value up greater than 4% in after-hours buying and selling.

The upshot, at the least in Huang’s view: neglect concerning the bubble, there may be solely development.

“There’s been numerous speak about an AI bubble,” Jensen stated throughout the firm’s earnings name. “From our vantage level, we see one thing very completely different.”