Nvidia Corporation announced record financial results for its third fiscal quarter, reporting $57 billion in revenue, a 62% increase compared to the same period last year. The company's GAAP net income also surged, reaching $32 billion, up 65% year-over-year. Both revenue and profit figures exceeded Wall Street's expectations.
The primary driver of Nvidia's robust performance was its data center business, which generated a record $51.2 billion in revenue. This segment saw a 25% increase from the previous quarter and a substantial 66% rise from a year ago. The remaining $5.8 billion in revenue was primarily from the company's gaming business, contributing $4.2 billion, with professional visualization and automotive segments making up the rest.
Colette Kress, Nvidia's Chief Financial Officer, stated that the data center growth was fueled by an acceleration in computing, powerful AI models, and agentic applications. During the quarter, the company announced AI factory and infrastructure projects totaling an aggregate of 5 million GPUs. Ms. Kress indicated that this demand spans various markets, including cloud service providers (CSPs), sovereign entities, modern builders, enterprises, and supercomputing centers, encompassing \"multiple landmark build outs.\"
CEO Jensen Huang noted that sales of the company's Blackwell GPU chips, including the Blackwell Ultra unveiled in March, were \"off the charts,\" adding that cloud GPUs were \"sold out.\" Mr. Huang emphasized that computing demand continues to accelerate and compound across both training and inference, describing the company's position within a \"virtuous cycle of AI.\"
Despite the overall positive results, Nvidia reported that shipments of its H20 data center GPU, designed for generative AI and high-performance computing, were 50 million units. Ms. Kress described this as a \"disappointing result\" attributed to \"geopolitical issues and and the increasingly competitive market in China,\" leading to unmaterialized purchase orders. The company stated its commitment to continued engagement with U.S. and China governments to advocate for competitive market access.
Looking ahead, Nvidia projects further growth, forecasting revenue of $65 billion for the fourth quarter. Following the earnings announcement, the company's share price increased by over 4% in after-hours trading. Mr. Huang addressed discussions of an \"AI bubble\" during the earnings call, stating, \"From our vantage point, we see something very different,\" suggesting continuous, exponential growth in the AI ecosystem.
