Nvidia's Blockbuster Earnings just brought relief to Wall Street.
On Wednesday, the chip giant reported quarterly revenue of $57 billion and delivered another impressive performance from its data center division, which brought in $51 billion, beating analysts' estimates of $49.3 billion.
Nvidia also raised its fourth-quarter forecast, expecting sales of $65 billion. The upbeat outlook lifted shares of artificial intelligence and semiconductor companies after a tough few days. Nvidia shares jumped more than 3% in after-hours trading, while shares of other chipmakers such as Advanced Micro Devices, Broadcom and Taiwan Semiconductor also posted gains.
Here are the key takeaways from Nvidia's third-quarter earnings, from fears of an artificial intelligence bubble to the various new partnerships the chipmaker is involved in.
1. AI Bubble
CEO Jensen Huang raised concerns about artificial intelligence bubble unambiguously.
“There's been a lot of talk about the AI bubble,” he said as he began his earnings call. “From our perspective, we see something completely different.”
“As a reminder, Nvidia is unlike any other accelerator,” Huang added. “We excel at every stage of AI, from pre-training to post-training to inference.”
Huang added that the shift from using CPUs to GPUs, AI's ability to generate revenue through advertising, and the emergence of agent-based AI systems that could drive a new wave of applications are all reasons why he still expects growth in the coming years.
An AI optimist, Huang has previously dismissed concerns that AI could replace large numbers of jobs.
2. New partnerships
Nvidia praised its new partnership.
During the conference call, Nvidia announced new deals with OpenAI, Anthropic, Uber and xAI.
Earlier in September, Nvidia announced a joint letter of intent with OpenAI “for a landmark strategic partnership to deploy at least 10 gigawatts of Nvidia systems for OpenAI's next-generation artificial intelligence infrastructure to train and run next-generation models on the path to deploying super intelligence.” According to the press release, Nvidia plans to invest up to $100 billion in data center infrastructure using Nvidia hardware to begin going online by the second half of 2026.
On Tuesday, Nvidia announced “deep technology partnershipOn the same day, Anthropic announced it would spend $30 billion on compute to scale its Claude artificial intelligence model on Microsoft's Azure cloud platform, which would be “powered by Nvidia.”
On Wednesday, ahead of its earnings report, Nvidia and xAI also announced that data center in Saudi Arabiaequipped with hundreds of thousands of Nvidia chips, will have Elon Musk's artificial intelligence startup as its first client.
3. China remains a concern
Export restrictions regarding China continue to cause concern.
CFO Colette Kress said during an earnings call Wednesday that Nvidia is “frustrated” by U.S. export rules that continue to limit its ability to sell advanced artificial intelligence chips to China, and added that large orders from China fell through this quarter due to “geopolitical issues” and growing competition in the market.
Kress also stood by Nvidia's guidance of zero data center or compute revenue in China in the fourth quarter, although the company plans to continue engaging with both U.S. and Chinese regulators.
Despite the uncertainty, DA Davidson analyst Jill Luria said ahead of the report that his team doesn't see AI demand slowing next year and expects Nvidia to maintain its lead even as rivals rise and trade tensions persist.
4. Key areas of growth
Nvidia is bullish on robotics and artificial intelligence infrastructure.
In its earnings report, Nvidia highlighted robotics as one of its key growth areas. Auto sales in the third quarter were $592 million, up 32% from the same quarter in 2024.
On Wednesday, Nvidia reported in its latest 10th quarter report that expansion of energy infrastructure it's a “complex, multi-year process” that comes with many obstacles, but the company remains confident that artificial intelligence infrastructures such as data centers will drive growth.
“We believe Nvidia will be the best bet for building $3 to $4 trillion worth of AI infrastructure each year,” Kress said during the earnings call. “According to our estimates, by the end of the decade demand for artificial intelligence infrastructure continues to exceed our expectations.”
“Last quarter, we announced AI fabrication and infrastructure projects totaling 5 million GPUs,” Kress added.
5. Hyperscalers
Nvidia says hyperscale is driving a huge portion of its growth.
Kress told investors on the earnings call that hyperscalers such as Meta They are expected to account for “roughly half” of Nvidia's “long-term capabilities” as they shift more workloads to accelerated computing and generative artificial intelligence.
She added that Nvidia is helping Meta improve its experience by increasing the time users spend on Threads and Facebook.
However, Huang rejected the idea that only the biggest tech giants buy GPUs. He said investing in Nvidia GPUs “only improves their scale, speed and cost for general-purpose computing,” especially for more resource-constrained companies that need to “continue to drive costs down.”
