The numbers are in, and Nvidia (NVDA) has officially reported its Q3 earnings.
At a glance, Nvidia reported:
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Record revenue of $57.0 billion, up 22% from Q2 and up 62% from a year ago
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Record Data Center revenue of $51.2 billion, up 25% from Q2 and up 66% from a year ago
Nvidia foresees continued revenue growth in the fourth quarter of its fiscal 2026, up to $65.0 billion.
To the collective relief of the artificial intelligence (AI) industry, not only did Nvidia beat analysts’ expectations, but CEO Jensen Huang said, “Blackwell sales are off the charts, and cloud GPUs are sold out” – indicating that demand for its core chip products is healthy, to say the least.
Huang went on to say, “Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”
Wall Street tends to view Nvidia purely as an AI stock, but Q3 results show the company’s diversified strategy is working.
Gaming revenue hit $4.3 billion, up 30% year over year, with launches of Borderlands 4, Battlefield 6, and ARC Raiders featuring NVIDIA DLSS 4 technology.
Professional visualization posted $760 million in revenue, up 56% from a year ago, boosted by DGX Spark, the world’s smallest AI supercomputer.
Automotive and robotics generated $592 million in revenue, up 32% year over year. Nvidia partnered with Uber (UBER) to scale a Level 4-ready mobility network starting in 2027, targeting 100,000 vehicles.
In addition to its core products, Nvidia announced strategic partnerships with OpenAI for 10 gigawatts of AI infrastructure deployment; Anthropic, which is adopting 1 gigawatt of compute capacity; and Intel (INTC), a partner on custom data center products.
The company also revealed plans for seven new supercomputers, including plans with Oracle (ORCL) to build the U.S. Department of Energy’s largest AI supercomputer with 100,000 Blackwell GPUs.
Nvidia returned $12.5 billion to shareholders through share repurchases during the quarter.
Nvidia shares jumped more than 6% in after-hours trading, providing relief after a brutal week for tech stocks. Major indexes had fallen for four straight sessions, with the S&P 500 Index ($SPX) sitting 4% below its late-October high.
This news likely hit Michael Burry and other contrarian investors’ short positions on NVDA particularly hard. Burry deregistered Scion Asset Management last week after admitting his views were “out of sync with the markets.”
CEO Jensen Huang addressed investor concerns about faltering demand directly, stating “cloud GPUs are sold out.” Nvidia also revealed $500 billion in orders for Blackwell and Rubin GPUs through 2026.
However, questions remain about sustainability as major tech companies tap debt markets to fund AI buildouts.
“The AI concern is not as much about high valuation as it is high debt issuance and over-investment concerns,” said Nathan Peterson of the Schwab Center for Financial Research.
For now, investors got confirmation that AI demand hasn’t peaked. Time will tell if this marks the bottom for tech stocks or just a temporary bounce.
On the date of publication, Justin Estes had a position in: NVDA. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com