Strong quarterly results reignited optimism across the AI sector.
Nvidia (NVDA) delivered a blockbuster third quarter that beat expectations on nearly every metric, easing fears of an AI slowdown. The company’s results and outlook signaled that demand for next-gen chips remains exceptionally strong.
Key Points
- Revenue surged 62% year-over-year to $57 billion, well ahead of forecasts.
- Management expects $65 billion in Q4 sales, accelerating growth despite negligible China revenue.
- CEO Jensen Huang dismissed “AI bubble” concerns, citing demand across cloud, enterprise, and emerging AI markets.
Demand for AI Chips Hits New Highs
Nvidia’s latest results highlighted the strength of global AI investment, with adjusted earnings per share coming in at $1.30 versus the $1.26 expected. Revenue reached $57 billion, powered largely by data-center demand. Sales from that segment soared to over $51 billion, a 66% jump from last year as cloud providers and AI infrastructure builders scrambled to secure the company’s newest processors.
CEO Jensen Huang reiterated that the company’s Blackwell GPUs remain sold out and that demand continues to accelerate. Older chips continue to find use due to software updates, an important signal for investors assessing companies that are good to invest in throughout the AI cycle.
The company’s forecast of $65 billion in current-quarter revenue suggests 65% growth, even without contributions from China’s advanced chip market.
Is the AI Boom Really a Bubble?
A major theme on the earnings call was skepticism around fears of an overstretched AI market. Huang rejected bubble concerns, pointing to three expanding drivers of demand: non-AI software workloads running on GPUs, new AI applications, and emerging agentic AI systems.
Analysts noted that Huang's confidence helped calm markets, especially after several well-known investors trimmed exposure to AI names. With Wall Street’s new average price target implying a 33% upside, the market responded with gains across semiconductors and cloud-related equities.
What About China’s Slowdown?
China remains a challenging region for the company, with new geopolitical restrictions and domestic competition shrinking chip sales. The company reported just $50 million in H20 chip sales — far below past expectations.
Even so, Nvidia emphasized strong global demand outside China. Nations investing in “sovereign AI,” such as the UAE and Saudi Arabia, have become important new markets. The U.S. also approved shipments of up to 35,000 advanced AI servers to Middle Eastern customers, further supporting international growth.
Despite these challenges, management reaffirmed a long-term China strategy and ongoing discussions with government officials.
What It Means for Investors
For investors trying to analyze stocks in a shifting market, Nvidia’s results suggest that AI infrastructure spending remains strong. The company's guidance implies momentum is accelerating rather than cooling.
Nvidia expects cumulative orders for its next-generation Blackwell and Rubin chips to exceed $500 billion across 2025 and 2026. This visibility has boosted confidence in companies tied to the AI supply chain, including cloud and networking providers.
With shares rising after earnings and a significant upside implied by analyst targets, the company remains a standout among the best company investments in the tech sector.
Conclusion
Nvidia’s third-quarter results delivered clarity to a market concerned about an AI slowdown. With surging demand, expanding global reach, and strong visibility into future sales, the company remains a central force in the AI revolution and a bellwether for broader investment news trends.
FAQs
How much did Nvidia’s revenue grow this quarter?
Revenue rose 62% year-over-year to $57 billion, beating expectations.
Why are analysts optimistic about Nvidia’s outlook?
Management guided to $65 billion in next-quarter revenue, showing strong demand even without China’s contribution.
Is Nvidia concerned about an AI bubble?
No. CEO Jensen Huang said demand continues expanding across multiple AI categories.
How did China impact results?
China revenue fell sharply due to export restrictions and competition, but overall company sales remained strong.
Which markets are driving Nvidia’s growth now?
Data centers, cloud providers, sovereign AI spending, and enterprise AI applications are driving momentum.
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