Nvidia on Wednesday reported a dramatic increase in third-quarter profit and revenue as demand for its specialized chips that power artificial intelligence systems remained strong. For the three months ended Oct. 27, the Santa Clara, California–based company posted revenue of $35.08 billion, a 94% rise from $18.12 billion in the same quarter a year earlier.
The company reported net income of $19.31 billion for the quarter, more than double the $9.24 billion recorded in last year’s third quarter. On a per-share basis and adjusted for one-time items, Nvidia earned $0.81.
Nvidia earnings highlights
All numbers are in U.S. dollars.
- Nvidia (NVDA/NASDAQ): Adjusted earnings per share came in at $0.81 (analyst consensus had been $0.75), and revenue was $35.08 billion (compared with consensus near $33.16 billion).
Wall Street reaction and analyst expectations
Wall Street analysts had expected adjusted earnings of about $0.75 per share on revenue near $33.17 billion, according to FactSet. Investors digested the stronger-than-expected results calmly: Nvidia shares slipped roughly 1% in after-hours trading, after a year-to-date gain of about 195% through Wednesday morning.
“The age of AI is in full steam, propelling a global shift to Nvidia computing,” said Jensen Huang, Nvidia’s founder and CEO, commenting on the results.
Nvidia’s third-quarter data centre revenue reached $30.8 billion, up 112% year over year. The company attributed that surge to demand for its Hopper computing platform, which is used for large language models, recommendation engines and a wide range of generative AI applications.
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Blackwell GPU: guidance, production and demand
Investors and analysts were particularly focused on guidance for Blackwell, Nvidia’s next-generation graphics processor designed for artificial intelligence workloads. Companies building AI data centres—including major cloud providers and firms working on large language models—have expressed strong interest in Blackwell systems.
Nvidia Chief Financial Officer Colette Kress said that production shipments of Blackwell are scheduled to start in the fourth quarter of fiscal 2025, with a continued ramp into fiscal 2026. On the earnings call, Kress warned that both Hopper GPUs and Blackwell systems face supply constraints, and she expects demand for Blackwell to exceed supply for several quarters in fiscal 2026.
“Every customer is racing to be the first to market,” Kress said, noting that Blackwell systems are already in the hands of major partners who are actively bringing up their data centres. Jensen Huang added that the company plans to deliver more Blackwell units than had been previously estimated for the coming quarter.
Artificial intelligence sector leadership
Nvidia has emerged as a central supplier to the artificial intelligence industry, with tech companies and cloud operators investing heavily in the company’s chips and the data centre infrastructure required to train and run AI models. Nvidia gained an early lead in this market in part because of the company’s focus on GPU architectures that are well suited to the parallel computing demands of AI.
Nvidia’s strategy and broader market impact
Nvidia has a history of making high-stakes strategic bets. The company helped popularize graphics processing units (GPUs) after inventing its widely adopted GPU architecture in the late 1990s, an innovation that fueled the growth of PC gaming and changed computer graphics. In the most recent quarter, gaming revenue rose to $3.3 billion, an increase of 15% year over year.
Over the past year, strong interest in generative AI tools—software that can draft text, create images and serve as intelligent assistants—has driven increased demand for Nvidia’s specialized chips. As of Wednesday morning, Nvidia was the most valuable publicly traded company by market capitalization, valued at over $3.5 trillion, a milestone that has drawn close scrutiny from market watchers tracking the company’s path toward higher valuations.
Dan Ives, an analyst at Wedbush Securities, said the results reinforce the view that the AI revolution is still in its early stages and that demand for Blackwell is only beginning. He described the earnings report as a landmark moment for Nvidia and said any stock weakness following the release would likely be short-lived.
Through the first half of the year, Nvidia shares climbed nearly 150%, pushing the stock to trade at historically high multiples relative to its past valuations and compared with the broader S&P 500 index.
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