Nvidia delivered another blockbuster quarter that eased concerns about an overheating artificial intelligence market, sending its shares higher in extended trading and breathing fresh life into a global tech rally.
The chipmaker reported record third-quarter revenue of $57 billion, a 62 percent jump from a year earlier and ahead of the $54.92 billion analysts expected, according to LSEG. Net income rose 65 percent to $31.9 billion. Earnings came in at $1.30 a share, topping the $1.26 consensus estimate. The results were driven overwhelmingly by Nvidia’s data center business, which has become the backbone of the world’s AI buildout.
Data center sales surged 66 percent to $51.2 billion, easily clearing the $48.62 billion analysts had projected. The company said surging global demand for advanced AI infrastructure continues to push cloud providers, enterprises and startups to expand their compute capacity at a rapid clip.
Shares climbed about 4.4 percent in after-hours trading to $191.21. NVIDIA's stock is now up roughly 39 percent this year.
On a call with analysts, CEO Jensen Huang dismissed talk of an AI bubble and said demand for Nvidia’s chips remains extraordinarily strong. He highlighted explosive growth among AI developers and new entrants across industries and countries. Huang said computing needs are accelerating far faster than many expected because companies are racing to integrate AI into products and operations.
“There has been a lot of talk about an AI bubble. From our vantage point, we see something very different,” Huang said. “We are in every cloud. The reason why developers love us is that we are literally everywhere. One architecture. Things just work.”
Huang reiterated that Nvidia has accumulated about five hundred billion dollars in bookings for its most advanced chips through 2026, underscoring what he described as a long runway for continued growth. “We have entered the virtuous cycle of AI,” he said. “AI is going everywhere, doing everything, all at once.”
Looking ahead, Nvidia expects fourth-quarter revenue of $65 billion, plus or minus two percent. Analysts surveyed by FactSet had forecast $62.2 billion. The upbeat outlook helped lift tech stocks across Asia on Thursday, soothing investor anxiety that the AI boom might be losing momentum.