Nvidia’s record $57B revenue and upbeat forecast quiets AI bubble talk

In a striking display of confidence, Nvidia's founder and CEO Jensen Huang delivered an optimistic outlook during the company’s third-quarter earnings call. Nvidia reported an impressive $57 billion in revenue for the quarter, marking a 62% increase compared to the same period last year. The company's net income reached $32 billion on a GAAP basis, reflecting a 65% year-over-year growth, both figures exceeding Wall Street’s expectations. A substantial portion of this revenue surge can be attributed to Nvidia's thriving data center business, which generated a record $51.2 billion—up 25% from the previous quarter and an astonishing 66% year-over-year increase. The gaming sector contributed $6.8 billion, with $4.2 billion from gaming alone, while professional visualization and automotive sectors also played a role in the overall revenue. Nvidia's CFO, Colette Kress, highlighted in her statement that the data center segment has experienced remarkable growth driven by advancements in computing, powerful AI models, and innovative applications. Kress noted that the company sold a total of 5 million GPUs during the quarter, with demand spanning various markets, including cloud service providers, government entities, and supercomputing centers. The newly launched Blackwell Ultra GPU, introduced in March, has emerged as a top performer within Nvidia’s lineup, with previous Blackwell architecture versions also seeing strong demand. Huang emphasized the exceptional sales figures, stating, "Blackwell sales are off the charts, and cloud GPUs are sold out." He continued to express optimism about the future, stating that demand for computing is rapidly increasing across training and inference, marking the onset of a robust cycle of AI development. "The AI ecosystem is scaling quickly, with numerous new foundation model creators and startups emerging in various industries and countries. AI is omnipresent, tackling everything simultaneously," Huang declared. Looking ahead, Nvidia is forecasting a further increase in revenue, projecting $65 billion for the fourth quarter, which has already driven its share price up over 4% in after-hours trading. Huang dismissed concerns about an AI bubble, asserting that from Nvidia's perspective, the outlook is one of continued growth and momentum.