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NVIDIA reported record quarterly revenue of $57 billion Wednesday and issued guidance that exceeded Wall Street expectations by billions, delivering a definitive answer to mounting questions about whether the artificial intelligence boom has peaked.
The chipmaker’s third-quarter results for fiscal 2026 showed revenue climbing 22% from the prior quarter and surging 62% from a year earlier, while fourth-quarter guidance of $65 billion came in roughly $4 billion above analyst projections. The numbers triggered an immediate 4% jump in after-hours trading and pulled other tech stocks higher.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” said Jensen Huang, NVIDIA’s founder and CEO. “Compute demand keeps accelerating and compounding across training and inference — each growing exponentially.”
The results arrive at a critical moment for the technology sector, which has weathered a recent sell-off amid skepticism about returns on massive AI infrastructure investments. NVIDIA’s stock had fallen 15% from its highs before Wednesday’s report, with prominent investors including Peter Thiel and Michael Burry reducing positions in recent weeks.
Data Center Revenue Powers Growth
NVIDIA’s Data Center segment generated $51.2 billion in the quarter ended Oct. 26, up 25% sequentially and 66% year-over-year. The division has become the company’s dominant revenue source as hyperscalers and enterprises race to build AI computing capacity.
Both GAAP and non-GAAP earnings came in at $1.30 per diluted share, beating estimates. Gross margins reached 73.4% on a GAAP basis and 73.6% non-GAAP, roughly flat with the prior quarter.
The company returned $37 billion to shareholders through share repurchases and dividends during the first nine months of fiscal 2026, with $62.2 billion remaining under its buyback authorization as of quarter-end.
Blackwell Chip Launch Drives Demand
NVIDIA’s newest Blackwell architecture has emerged as a key growth driver, with the company announcing a strategic partnership to deploy at least 10 gigawatts of systems for OpenAI’s next-generation infrastructure. The chipmaker also revealed that Anthropic will adopt 1 gigawatt of compute capacity using Grace Blackwell and Vera Rubin systems.
“We’ve entered the virtuous cycle of AI,” Huang said. “The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”
The company celebrated production of its first Blackwell wafer on U.S. soil at TSMC’s Arizona facility, marking what executives described as revitalization of American manufacturing. NVIDIA also unveiled plans to accelerate seven new supercomputers, including one for the U.S. Department of Energy featuring 100,000 Blackwell GPUs.
Major cloud providers including Google Cloud, Microsoft, Oracle and xAI are partnering to build hundreds of thousands of NVIDIA GPUs into American AI infrastructure. The company also announced collaborations with Intel to develop multiple generations of custom data center and PC products with NVIDIA NVLink technology.
China Revenue Drops to “Insignificant” Levels
Sales of NVIDIA’s H20 chip — a version designed to comply with U.S. export restrictions to China — registered as “insignificant” in the quarter, according to company disclosures. The sharp decline signals Chinese companies are developing alternative technologies domestically rather than purchasing restricted American chips.
The development could reshape future revenue if geopolitical tensions ease and export rules change, though NVIDIA provided no indication such shifts are imminent.
Gaming, Professional Visualization Show Strength
Gaming revenue reached $4.3 billion, down 1% sequentially but up 30% from a year ago. The company launched several major titles including Borderlands 4, Battlefield 6 and ARC Raiders with its DLSS 4 technology and Reflex features.
Professional Visualization revenue jumped 26% quarter-over-quarter to $760 million, representing 56% annual growth. The segment benefited from the launch of DGX Spark, which NVIDIA describes as the world’s smallest AI supercomputer.
Automotive and Robotics revenue totaled $592 million, up 1% from the prior quarter and 32% year-over-year. NVIDIA introduced the DRIVE AGX Hyperion 10 autonomous vehicle platform and announced a partnership with Uber to scale a level 4-ready mobility network starting in 2027, targeting 100,000 vehicles.
Company Projects Continued Momentum
For the fourth quarter of fiscal 2026, NVIDIA expects gross margins of 74.8% on a GAAP basis and 75% non-GAAP, each with a 50-basis-point variance. Operating expenses are projected at approximately $6.7 billion GAAP and $5 billion non-GAAP.
The company maintained its quarterly dividend at $0.01 per share, payable Dec. 26 to shareholders of record as of Dec. 4.
NVIDIA reported operating cash flow of $23.8 billion for the quarter and free cash flow of $22.1 billion. For the nine-month period, operating cash flow reached $66.5 billion with free cash flow of $61.7 billion.
Global Expansion Continues
The chipmaker announced significant international initiatives, including a £2 billion investment in U.K. AI infrastructure through partnerships with CoreWeave, Microsoft and Nscale. NVIDIA launched what it calls the world’s first Industrial AI Cloud with Deutsche Telekom to power Germany’s industrial transformation.
In South Korea, the company is working with Hyundai Motor Group, Samsung Electronics, SK Group and NAVER Cloud to expand AI infrastructure with over 250,000 NVIDIA GPUs.
The company revealed that Arm is extending its Neoverse platform with NVIDIA NVLink Fusion to accelerate AI data center adoption, while Meta, Microsoft and Oracle will deploy Spectrum-X Ethernet networking switches to boost AI data center networks.
Technology Announcements
NVIDIA introduced several new products and architectures, including Rubin CPX, described as a new class of GPU built for massive-context processing. The company unveiled NVQLink, an open system architecture for coupling GPU computing with quantum processors that will be adopted by more than a dozen supercomputing centers globally.
The chipmaker also launched BlueField-4, positioning it as the processor for operating AI factories, with industry partners including CoreWeave, Dell Technologies, Oracle Cloud Infrastructure and Red Hat building next-generation platforms.
NVIDIA will host a conference call at 2 p.m. Pacific time Wednesday to discuss results with analysts and investors.
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