Nvidia surpasses expectations as AI demand drives record earnings

According to the company’s earnings release on Wednesday, revenue for the three months to October surged by 62% to $57 billion, driven primarily by expanding demand for Nvidia processors used in AI data centers. Sales in this core division rose 66% to more than $51 billion. Forecasts for fourth-quarter revenue, projected at $65 billion, also exceeded analysts’ expectations, sending Nvidia shares up around 4% in after-hours trading.

Chief Executive Jensen Huang said demand for the company’s latest AI systems remained exceptionally strong. Sales of Blackwell-generation platforms were “off the charts,” he noted, adding that “cloud GPUs are sold out.”

Addressing market speculation about an AI bubble, Huang said: “From our vantage point, we see something very different. We excel at every phase of AI.”

The report arrived during heightened volatility on Wall Street, where concerns over inflated AI valuations contributed to four consecutive days of decline in the S&P 500. Despite this backdrop, analysts said Nvidia again outperformed elevated expectations.

“The question was not whether the company would beat expectations, but by how much,” said Adam Turnquist of LPL Financial.

Investors also sought clarity on the company’s earlier projection of $500 billion in AI chip orders. Chief Financial Officer Colette Kress said Nvidia would “probably” take additional orders but expressed concern about U.S. export restrictions affecting sales to China. The United States, she said, “must win the support of every developer,” including those in the Chinese market.

Earlier, Qazinform News Agency reported that Microsoft, Nvidia and Anthropic confirmed new commitments aimed at integrating cloud scale, advanced hardware and next generation model development.