Nvidia Beats Estimates as Growth Re-Accelerates

Shortly after Nvidia announced its latest results on Wednesday after market close, a collective sigh of relief reverberated across Wall Street. The chipmaker at the heart of the AI transformation had once again beaten expectations, delivering results that provided much needed assurance to jittery investors who feared that the AI hype cycle had passed its peak or, even worse, that the AI bubble was about to burst.

There were little signs of a slowdown in Nvidia’s results – in fact, the company’s growth accelerated and will pick up even more momentum in the current quarter, according to Nvidia’s outlook for the fourth quarter of its fiscal year 2026. In the three months ended October 27, Nvidia’s revenue grew 62 percent from the same period last year, reaching $57 billion beating its own forecast of $54 to $55 billion as well as analyst expectations.

Once again, Nvidia's data center business was at the heart of the company's record-breaking quarter, as it saw a 66-percent increase in revenue versus a year ago and accounted for just under 90 percent of total sales. Net income surged to $31.9 billion in the quarter, which is more than seven times the company's full-year profit for fiscal 2023, the last year without the impact of AI. For the current quarter, Nvidia expects revenue of $65 billion, which would bring its growth rate to 65 percent – another increase from this quarter’s 62-percent growth.

In his comments accompanying the earnings release, Nvidia CEO Jensen Huang didn't temper his optimism, saying that demand for his company's Blackwell chips was "off the charts". "Compute demand keeps accelerating and compounding across training and inference — each growing exponentially," he said. "We’ve entered the virtuous cycle of AI. 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."