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Nvidia Tops Q3 Estimates, Lifts Outlook as AI Chip Demand Surges

The results suggest the AI capex cycle remains strong despite persistent concerns over concentration, deployment constraints, and export limits.

Overview

  • Nvidia posted $57.0 billion in Q3 revenue and $31.9 billion in profit, with earnings of $1.30 per share on 62% year-over-year sales growth.
  • The company forecast roughly $65 billion in Q4 revenue (±2%) and guided to about 75% adjusted gross margin, sending shares higher after hours.
  • Data‑center sales reached $51.2 billion as CEO Jensen Huang said Blackwell sales are "off the charts" and cloud GPUs are sold out, with visibility to roughly $500 billion in chip demand through 2026.
  • Investors took the beat and outlook as a relief to AI‑bubble worries, with broader tech shares firming as Nvidia reinforced its role as the AI infrastructure bellwether.
  • Risks remained in focus, including four customers making up 61% of sales, rising use of rental agreements for Nvidia chips totaling $26 billion, physical bottlenecks in power and land, and curtailed China sales under U.S. export controls.