NVIDIA Reports Record Q3 Earnings; Jensen Huang Optimistic About AI Sector

Staff Report: PNN

Microchip manufacturer NVIDIA has reported record earnings for the third quarter, largely driven by its data center business. Founder and CEO Jensen Huang said that based on the company’s results, the future of artificial intelligence (AI) shows “growth, not a bubble.”

NVIDIA’s third-quarter revenue reached $57 billion, a 72% increase from the same period last year. Net income rose to $32 billion, up 56% year-on-year. Both figures surpassed Wall Street expectations.

Revenue from the data center business was $29 billion, up 25% from the previous quarter and 66% from last year. The remainder came from gaming ($4.2 billion) and professional visualization and automotive sectors ($1.6 billion).

Chief Financial Officer Collette Kress stated that growth in the data center sector is driven by computing, stronger AI models, and increased agentic applications. The company announced plans to deploy five million GPUs this quarter to strengthen the AI ecosystem across industries.

The recently launched Blackwell Ultra GPU achieved significant sales success. Huang said, “Sales of Blackwell are truly sky-high, and cloud GPU sales are sold out.”

However, sales of the H20 data center GPU, designed for generative AI and high-performance computing, were somewhat disappointing in China. Kress explained that geopolitical issues and market competition in China prevented the execution of some large orders.

The company expects fourth-quarter revenue of $56 billion, which led NVIDIA shares to rise 4% in after-hours trading.

Huang summarized, “While there is much discussion about an AI bubble, we see a completely different picture. The AI ecosystem is rapidly expanding, with new foundation model developers, startups, and industries across all countries adopting AI.”

The results and future outlook demonstrate that NVIDIA is poised to maintain leadership in AI and data center businesses, with continued market growth.