Nvidia Reports $57 Billion Revenue Surge Amidst AI Market Speculation
In a striking demonstration of growth, Nvidia has announced third-quarter revenues of $57 billion, marking a remarkable 62% increase year-over-year. The company’s net income reached $32 billion, representing a 65% rise, comfortably exceeding Wall Street predictions.
Data center operations largely fueled this success, generating a historic $51.2 billion in revenue—up by 25% from the previous quarter and 66% year-on-year. The gaming sector contributed an additional $5.8 billion, with $4.2 billion coming specifically from gaming, while professional visualization and automotive segments also contributed.
Nvidia’s CFO, Colette Kress, underscored the integral role of advanced computing and AI in driving this growth. She disclosed that the past quarter saw Nvidia announce major AI factory and infrastructure initiatives involving up to 5 million GPUs. “Demand spans every market, including cloud service providers, sovereign states, and supercomputing centers, featuring numerous landmark build-outs,” Kress remarked.
The newly launched Blackwell Ultra GPU has emerged as a standout product, with Huang noting that demand for Blackwell chips has surged. “Sales of Blackwell are off the charts, and our cloud GPUs are sold out,” he stated during the earnings call. He emphasized the exponential growth in compute demand across various applications, positioning AI as an indelible part of multiple industries worldwide.
However, Kress did express concerns regarding the company’s H20 GPU shipments, specifically designed for generative AI and high-performance computing. With only 50 million units shipped, she attributed the shortfall to geopolitical issues that hindered sales in China. “We faced challenges in fulfilling sizable orders due to intensified competition and regulatory factors in the region,” Kress explained.
Looking ahead, Nvidia anticipates continued growth, projecting nearly $65 billion in fourth-quarter revenue, which has positively impacted its share price, rising over 4% in after-hours trading. Jensen Huang remains optimistic, dismissing talk of an AI bubble and instead highlighting the ongoing growth potential. “From our perspective, we envision a landscape of robust expansion,” he concluded.
Key Takeaways:
– Nvidia achieves $57 billion in Q3 revenue, a 62% increase.
– Data center segment leads with record earnings of $51.2 billion.
– Blackwell Ultra GPU in high demand amid expanding AI applications.
– Future projections forecast $65 billion in Q4 revenue.
