Nvidia Rallies on ‘Off the Charts’ AI Chip Sales, Tops Forecasts

• Nvidia (NVDA) reported Q3 adjusted EPS of $1.30 and revenue of $57.01 billion, beating estimates of $1.26 and $55.2 billion, while issuing strong Q4 guidance of $65 billion ±2% versus the $62 billion consensus.
• Data center revenue reached $51.2 billion (exceeding the $49.3 billion estimate) driven by explosive Blackwell demand, with CEO Jensen Huang stating sales are “off the charts” and cloud GPUs remain sold out.
• Shares rose 4.30% to $194.54 post-earnings, extending a year-to-date gain of more than 38% as Nvidia solidifies its leadership in the accelerating global AI infrastructure buildout.

Nvidia Corporation (NVDA) delivered a strong third-quarter performance that exceeded Wall Street expectations and reinforced its dominant position in the accelerated computing and artificial intelligence infrastructure markets. The company reported adjusted earnings per share of $1.30 on revenue of $57.01 billion, surpassing consensus estimates of $1.26 per share and $55.2 billion in sales. Compared to the prior-year quarter, these figures represent substantial growth from $0.81 per share and $35.1 billion in revenue.

The primary driver continues to be explosive demand for Nvidia’s data center platforms, which generated $51.2 billion in revenue against expectations of $49.3 billion. This segment now accounts for the overwhelming majority of the company’s business as hyperscalers, enterprises, and sovereign AI projects ramp capital expenditures. Gaming revenue, while still meaningful, registered $4.3 billion, slightly below the $4.4 billion forecast but secondary in strategic importance amid the ongoing AI buildout.

Management issued robust fourth-quarter guidance, projecting revenue of $65 billion plus or minus 2%, well ahead of the $62 billion consensus. Chief Executive Officer Jensen Huang described Blackwell platform sales as “off the charts” and noted that cloud GPU capacity remains fully subscribed. Chief Financial Officer Colette Kress highlighted that the newer Blackwell Ultra architecture is now the preferred choice across all major customer segments, while demand for the initial Blackwell products stays elevated. Sales of the China-specific H20 processor were described as insignificant amid ongoing export restrictions.

The results arrive against a backdrop of intense capital reallocation within the broader AI ecosystem. Prior to the print, entities including Peter Thiel’s hedge fund and SoftBank Group (SFTBY) fully exited their Nvidia holdings, with SoftBank’s stake valued at approximately $5.8 billion. These moves reflect portfolio repositioning as large investors redirect capital toward their own AI initiatives rather than a loss of confidence in Nvidia’s trajectory.

Competitive context remains favorable for Nvidia despite aggressive pursuits by peers. Advanced Micro Devices (AMD) Chief Executive Officer Lisa Su recently reiterated her view that the data center market could reach $1 trillion by 2030, a forecast that implicitly validates the scale of the opportunity Nvidia currently captures. Year-to-date, Nvidia shares have advanced more than 38%, while AMD has gained 85%, illustrating sustained investor enthusiasm across the semiconductor complex powering generative AI.

Market reaction to the report was immediately positive, with Nvidia shares rising 4.30% to $194.54 in post-earnings trading. The brief surpassing of a $5 trillion market capitalization last month underscores how the company has become the clearest proxy for the global AI infrastructure buildout that Huang characterizes as a “virtuous cycle” now accelerating across industries and geographies worldwide.

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