Nvidia's blockbuster Q3 earnings smash estimates, defying AI bubble fears

Nvidia corporation delivered an exceptional financial performance for its third quarter, shattering expectations and fueling a powerful rally in tech stocks as CEO Jensen Huang declared the AI boom is accelerating, not peaking.

The company reported record revenue of $57.01 billion for the quarter ended October 26, a 22% jump from the previous quarter and a 62% surge from a year ago.

This figure handily topped analyst estimates of $55 billion. The official data of the company reveals that the center division was the primary engine of growth, generating $51.2 billion in revenue.

These earnings silenced skeptics who have questioned the sustainability of the AI investment frenzy.

On the earnings call, CEO Jensen Huang directly talked about the “AI bubble” chatter that has circulated in recent months.

He stated, “From our vantage point, we see something very different,” signifying Nvidia’s unique position across all phases of AI development.

Confirming the success of their next generation Blackwell graphic processing units (GPUs), Huang stated, “Blackwell sales are off the chart, and cloud GPUs are sold out.”

Chief Financial Officer Colette Kress reinforced the bullish outlook, reiterating that the company has “half a trillion” dollars in orders for its Blackwell and upcoming Rubin AI chips through 2026, a figure she said is likely to grow.