Recently, the share prices of many US tech stocks have seen some pullback. Bridgewater reduced its holdings in the third quarter, and "Silicon Valley venture capital godfather" Peter Thiel sold off his entire stake in Nvidia. The stock news has also sparked discussions in the market about a potential bursting of the AI bubble. Nvidia 's latest quarterly earnings report, released this week, is considered a bellwether for the real demand for AI.
After the market closed on Wednesday local time, Nvidia released its third fiscal quarter results for the period ending October 26, 2025. Nvidia's revenue for the quarter was $57 billion, a 62% year-over-year increase, exceeding market expectations; net income was $31.9 billion, a 65% year-over-year increase; and the (GAAP) gross margin was 73.4%. ( Data Center) Business revenue hit a record high of $51.2 billion, up 66% year-over-year, exceeding market expectations.
"Blackwell chip sales far exceeded expectations, and cloud GPUs are sold out. Demand for training and inference computing continues to grow exponentially. We have entered the era of artificial intelligence... " "This is a virtuous cycle," said Nvidia CEO Jensen Huang. " The AI ecosystem is expanding rapidly, with more and more new foundational model makers and AI startups emerging. AI is everywhere and capable of anything."
Regarding its data center business, a key focus for the market, Nvidia stated that in addition to establishing a strategic partnership with OpenAI and planning to deploy at least 10 gigawatts of Nvidia systems, the company also partnered with Google and Microsoft during the quarter. Oracle bone script In partnership with companies like xAI, NVIDIA will build AI infrastructure in the US, comprising hundreds of thousands of NVIDIA GPUs. Furthermore, AI startup Anthropic will run and scale on NVIDIA infrastructure for the first time, utilizing 1 gigawatt of computing power. Additionally, according to NVIDIA CFO Colette Kress, NVIDIA's networking revenue reached $8.2 billion this quarter, a year-over-year increase of 162%.
In other business areas, Nvidia gaming... AI PC revenue reached $4.3 billion, a 30% year-over-year increase; professional visualization revenue reached $760 million, a 56% year-over-year increase; automotive and robotics revenue... Nvidia reported revenue of $592 million, a 32% year-over-year increase. The company projects fourth-quarter revenue of approximately $65 billion, plus or minus 2%, exceeding previous market expectations.
During the earnings call following the release of the financial report, Jensen Huang expressed continued confidence in the strong demand for AI. He stated that there has been much discussion recently about an AI bubble, but Nvidia sees something very different. Nvidia's products, unlike other accelerators, are suitable for use at every stage of AI development, including pre-training and post-training.
Jensen Huang emphasized that the world is undergoing three major platform shifts, and NVIDIA is involved in these shifts: first, the shift from general-purpose CPU computing to GPU-accelerated computing; second, artificial intelligence is changing applications; and third, the rise of agentic AI. The transition to generative AI will be revolutionary and necessary, bringing about significant changes to existing applications and business models.
Colette Kress added some data. She stated that Nvidia's Blackwell and Rubin revenues are projected to reach $500 billion from this year to the end of next year, with even greater opportunities ahead. Currently sold-out cloud GPUs include both next-generation and previous-generation architectures. The Rubin platform chip is expected to launch in the second half of 2026. Nvidia is driving hundreds of billions of dollars in infrastructure investment.
Nvidia's chip iteration is also underway. Colette Kress revealed that the data center revenue growth this quarter was primarily driven by the Blackwell GB300, which contributed more revenue than the GB200 this quarter, accounting for two-thirds of Blackwell's revenue. However, she stated that Nvidia has not yet delivered competitive data center products in the Chinese market.
Regarding whether the supply chain can support the demand after the cloud GPUs sell out, Jensen Huang stated that Nvidia and TSMC... Supply chain manufacturers, including those in packaging and memory, have all made plans. Regarding the challenges that need to be faced in business development, Jensen Huang said that there are constraints in power, memory supply, and manufacturing. At Nvidia's current scale, seeking growth is not easy, but the company is good at managing the supply chain.
Regarding Nvidia's share of revenue per gigawatt of data center construction, Jensen Huang stated that from Hopper to Blackwell and Rubin, with each architecture upgrade, Nvidia's share in data centers has been increasing, and its economic contribution to data center construction is growing. Blackwell's share is around 30%, and Rubin's may be higher than that.
Since September, Nvidia has announced investments in AI companies such as OpenAI and Anthropic. During a conference call, Jensen Huang was asked about Nvidia's investment philosophy. He stated that Nvidia uses its own cash to support the expansion of some projects. Nvidia has a resilient supply chain and a strong balance sheet to support these companies. Investment is a very important part of Nvidia's work, and all investments are related to expanding the ecosystem. He believes that Nvidia's investment in OpenAI will translate into huge returns.
On Wednesday, Nvidia shares rose 2.85% to $186.52, giving it a market capitalization of $4.53 trillion. After-hours trading saw Nvidia shares rise over 5%.
(Article source: CBN)
