Nvidia’s record profits and sold-out chips signal relentless AI demand, even as market jitters persist
Nvidia’s chips are fuelling the AI revolution—and the numbers behind that surge just shattered Wall Street’s expectations.
The company posted fiscal third-quarter revenue of US$57.01bn, handily beating analyst estimates, and projected sales of US$65bn for the current quarter, outpacing consensus forecasts, as reported by CNBC.
Net income soared 65 percent to US$31.91bn, underscoring the relentless demand for Nvidia’s processors at the heart of today’s artificial intelligence boom.
Data centre sales remain the engine of Nvidia’s growth, generating US$51.2bn in revenue—a 66 percent year-over-year jump, according to CNBC.
Of this, US$43bn came from GPU “compute” sales, while networking contributed US$8.2bn.
The Blackwell Ultra chip family, now Nvidia’s best-selling product, is driving much of this momentum, as noted by the company’s finance chief, Colette Kress.
Jensen Huang, Nvidia’s chief executive and co-founder, described the current landscape succinctly: “Blackwell sales are off the charts, and cloud GPUs are sold out. Compute demand keeps accelerating,” as cited by The New York Times.
With US$500bn in orders for 2025 and 2026 combined, Nvidia’s outlook remains bullish.
The company’s performance is closely watched as a bellwether for the technology sector, with its financial health reflecting broader trends in AI investment, reported by The New York Times.
Despite recent volatility and concerns about the sustainability of AI spending, Nvidia shares have climbed 34 percent this year, outpacing the Nasdaq 100 Index, according to Bloomberg.
Nvidia’s results come at a time when leading tech companies—including Microsoft, Amazon, Google, and Meta—are ramping up their AI investments, collectively expecting to spend more than US$380 billion this year, as per CNBC.
Analysts expect Nvidia’s revenue growth to moderate in the coming years, but the company’s valuation remains attractive relative to its historical average, according to Bloomberg.
Challenges persist, particularly in China, where export restrictions and competition have limited sales of Nvidia’s latest chips, as reported by CNBC.
