This forecast implies a year-over-year development price of roughly 70 p.c – nonetheless a notable deceleration in comparison with the prior 12 months’s 265 p.c development in the identical interval.
The information heart section, which accounts for almost all of Nvidia’s income, continued to be a major driver, producing US$30.8 billion within the quarter and exceeding analyst estimates of US$28.82 billion.
Nvidia’s Chief Monetary Officer, Colette Kress, additionally disclosed that 13,000 samples of Nvidia’s next-generation AI chip, Blackwell, had already been delivered to key prospects, together with Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL) and OpenAI.
“Blackwell is now within the palms of all of our main companions, and they’re working to deliver up their knowledge facilities,” Kress stated in an investor name reported by CNBC.
Blackwell, now in full manufacturing, is anticipated to contribute a number of billion {dollars} in income in the course of the fourth quarter as shipments ramp up within the coming 12 months.
The demand for the H200, Nvidia’s current-generation AI chip, additionally grew considerably over the last quarter, and each product strains are going through provide constraints which are anticipated to persist into fiscal 2026.
In the meantime, the gaming section stays robust with a income of US$3.28 billion, rising from US$2.8 billion a 12 months earlier, as demand for GPUs for PCs, laptops and sport consoles proceed to extend.
The outcomes surpassed market expectations of US$3.03 billion, marking continued power in Nvidia’s legacy gaming enterprise alongside its AI and knowledge heart dominance.
Smaller enterprise segments additionally contributed to total development. Gross sales within the automotive section grew 72 p.c year-over-year to US$449 million, pushed by elevated adoption of Nvidia’s chips for autonomous automobiles and robotics. Skilled visualization gross sales reached US$486 million, up 17 p.c from the prior 12 months, signaling constant demand for Nvidia’s enterprise options.
Regardless of the robust outcomes, Nvidia’s inventory skilled a 2 p.c drop in after-hours buying and selling after the quarterly launch, elevating questions amongst analysts and traders.
Whereas the explanations for this decline weren’t instantly clear, the modest quarter-over-quarter development implied in Nvidia’s fourth-quarter income forecast — at 7 p.c — might have tempered enthusiasm.
Nevertheless, market expectations for Nvidia, which has emerged as a dominant participant in AI expertise, stay exceptionally excessive. Shares of Nvidia have risen almost 200 p.c year-to-date, pushed by investor optimism about its place within the AI panorama.
Its present valuation now exceeds that of its rivals, together with Superior Micro Gadgets (AMD) (NASDAQ:AMD) and Intel (NASDAQ:INTC). Whereas Nvidia continues to steer the market, the excessive valuation creates stress to persistently outperform expectations.
Nvidia additionally faces geopolitical and regulatory challenges that would affect its future.
A possible tariff on Taiwan-manufactured chips has sparked considerations about price implications. Taiwan Semiconductor Manufacturing Firm (TSMC) (NYSE:TSM,TPE:2330), Nvidia’s main manufacturing associate, can be instantly affected by such measures, doubtlessly impacting Nvidia’s pricing and margins.
Nvidia has said its dedication to complying with any laws however has not detailed particular mitigation methods.
Market reactions to Nvidia’s earnings additionally replicate broader uncertainties in regards to the world semiconductor market. Whereas demand for AI expertise continues to develop, the business stays susceptible to macroeconomic components, together with provide chain disruptions and authorities insurance policies on chip manufacturing and commerce.
Wanting ahead, Nvidia’s administration stays optimistic about its capacity to fulfill escalating AI demand.
“The age of AI is in full steam, propelling a world shift to Nvidia computing,” stated firm CEO Jensen Huang within the official quarterly report.
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Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
