Nvidia, the world’s most valuable publicly traded company, delivered quarterly earnings that surpassed Wall Street forecasts, signaling robust demand for its AI-focused semiconductor lines and alleviating investor concerns over mounting artificial intelligence expenditures.
For the three months ended October, the chip designer posted a 62% jump in revenue to $57 billion, compared to $55.19 billion expected. The surge propelled largely by surging demand in its data center segment, which saw sales surge 66% year-over-year to over $51 billion. These results position Nvidia as a representative indicator of the broader AI market, with its performance expected to steer broader tech sentiment in financial markets.
Chief Executive Officer Jensen Huang highlighted in prepared remarks that demand for the company’s AI Blackwell systems was “off the charts.” He added that “cloud GPUs are sold out,” underscoring the sweeping appetite for Nvidia’s next-generation offerings.
The firm’s forward-looking guidance further impressed analysts: Nvidia projects revenue of $65.0 billion for the fiscal fourth quarter of 2026 (plus or minus 2%), notably ahead of consensus expectations of $61.98 billion. Gross margin is forecast to come in near 74.8% under GAAP (plus or minus 50 basis points) and roughly 75% on an adjusted basis, with operating expenses estimated at around $6.7 billion (GAAP) and $5.0 billion (adjusted).
Nvidia’s report captured even greater attention from investors as escalating concerns about potential overvaluation in the AI sector spooked markets, contributing to a four-day losing streak in the S&P 500 index—a slide of nearly 3% in November so far.
By division, the data center segment achieved record demand for Nvidia’s Blackwell platform, touting a tenfold improvement in throughput per megawatt compared to the prior generation. Meanwhile, gaming revenue hit $4.3 billion—up 30% from a year ago but narrowly missing estimates. Professional visualization achieved $760 million (a 56% year-over-year increase), outperforming expectations, while automotive revenues reached $590 million, marking a 32% annual rise despite slightly missing forecasts.
Free cash flow reached $22.09 billion, up 32% from the previous year. The company’s quarterly dividend of $0.01 per share will be payable on December 26, 2025, to shareholders of record as of December 4, 2025.
