TLDR
- Nvidia delivered Q3 revenue of $57.01 billion, surpassing analyst expectations of $54.92 billion, with EPS of $1.30 beating forecasts of $1.25
- Q4 revenue guidance came in at $65 billion, well above the $61.66 billion Wall Street expected
- Data center revenue hit $51.2 billion as Blackwell chip demand exceeded expectations
- Net income increased 65% year-over-year to $31.91 billion
- Stock jumped 4% after hours while bitcoin rose back above $90,000
Nvidia posted better-than-expected third-quarter results on Wednesday. The AI chipmaker reported revenue of $57.01 billion against Wall Street’s estimate of $54.92 billion.
Earnings per share reached $1.30 adjusted. Analysts had forecast $1.25.
Net income climbed 65% to $31.91 billion from $19.31 billion in the year-ago period. Shares rose over 4% in after-hours trading.
The company’s Q4 guidance exceeded expectations. Nvidia projects approximately $65 billion in sales for the current quarter. Analysts expected $61.66 billion.
Data Center Business Powers Results
Data center sales totaled $51.2 billion, beating the $49.09 billion analyst consensus. The segment grew 66% compared to last year.
CEO Jensen Huang dismissed concerns about an AI bubble. “There’s been a lot of talk about an AI bubble,” he said on the earnings call. “From our vantage point, we see something very different.”
Compute revenue, primarily GPU sales, reached $43 billion. The company attributed much of this growth to GB300 chip sales.
Finance chief Colette Kress said Blackwell Ultra has become the best-selling chip family. Huang added that Blackwell sales are “off the charts” and that “cloud GPUs are sold out.”
Networking products generated $8.2 billion in data center revenue. These components allow multiple GPUs to work together as a unified system.
Other Business Segments Show Growth
Gaming revenue came in at $4.3 billion, up 30% year-over-year. This segment historically drove Nvidia’s business before the AI boom.
Professional visualization sales reached $760 million, jumping 56% from last year. The segment includes the DGX Spark AI desktop computer.
Automotive and robotics revenue totaled $592 million, growing 32% annually. The company views robotics as a major growth opportunity.
Huang previously stated Nvidia has $500 billion in orders for 2025 and 2026 combined. Kress indicated this figure will continue growing.
China Sales Disappoint
The company faced challenges in China. Export restrictions prevent Nvidia from shipping current-generation Blackwell chips there.
H20 chip sales only reached $50 million during the quarter despite receiving export licenses. “Sizable purchase orders never materialized in the quarter due to geopolitical issues and the increasingly competitive market in China,” Kress explained.
Major customers include Microsoft, Amazon, Google, Oracle, and Meta. These tech giants recently increased their AI infrastructure spending forecasts to over $380 billion combined for this year.
The earnings report lifted crypto markets. Bitcoin climbed back above $90,000 after falling near $88,000 earlier Wednesday. AI-focused crypto tokens rose 4-5% following the announcement.
Bitcoin mining stocks with AI operations also gained ground. Some names jumped 6-11% in extended trading.
Nvidia repurchased $12.5 billion worth of shares during the quarter. The company paid out $243 million in dividends to shareholders.
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