Nvidia Corporation (NASDAQ: NVDA) delivered a blockbuster third-quarter performance, reporting $57.0 billion in revenue a 62% year-over-year increase and a 22% jump from the prior quarter. The results significantly exceeded Wall Street forecasts of around $55 billion.
The company’s data-centre segment which powers everything from cloud AI to high-performance computing drove the surge with revenue of $51.2 billion, up 66% compared to the same quarter last year.
During the earnings announcement on November 19, 2025, CEO Jensen Huang described demand as “off the charts,” citing strong interest in the company’s Blackwell-architecture AI chips and noting the company is seemingly operating in a “virtuous cycle of AI.”
Why These Results Matter
Validation of the AI Boom
The overwhelming demand for Nvidia’s chips especially within data centres and generative-AI infrastructure signals that the AI investment wave is far from cresting. Analysts like Dan Ives of Wedbush say the results show the AI story is in its “third inning,” not nearing an end.
Expansion Beyond Conventional Segments
Although gaming remains a strong part of Nvidia’s business, the data-centre division now accounts for the vast majority of revenue. This shift marks Nvidia’s evolution from GPU manufacturer to core infrastructure provider for generative-AI systems.
Forward Looking: Strong Q4 Outlook
Nvidia expects revenue of around $65 billion in its next quarter, surpassing the $62 billion analysts projected. This bullish guidepost indicates sustained demand rather than a one-time spike.
Implications for the Market
Given Nvidia’s dominance in high-end AI chips and its position as a key supplier to major cloud providers, its results serve as a bellwether for the broader tech and AI investment landscape.
Key Metrics at a Glance
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Revenue: $57.0 billion, up 62% year-over-year.
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Data-centre revenue: $51.2 billion, up 66% year-over-year.
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GAAP earnings per share: $1.30, exceeding estimates.
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Gross margin (GAAP): 73.4% (up slightly from previous quarter).
Risks & Considerations
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Supply constraints: Huang noted specific AI chips are sold out, which could limit growth or lead to customer delays.
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Regulatory environment: As Nvidia’s chips enable advanced computing globally, it remains vulnerable to export controls, geopolitical tension and chip-supply chain risks.
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Valuation expectations: With high growth comes steep expectations; any slowdown could trigger market re-rating.
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Competitive pressure: Other chip makers and design houses are ramping up, and alternative architectures could challenge Nvidia’s dominance.
What's Next to Watch
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Q4 revenue result vs. the $65 billion outlook.
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Customer demand growth in enterprise, cloud and automotive AI segments.
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Any announcements around new chip architectures, such as Vera Rubin or next-gen Blackwell.
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Impact of regulatory developments (export controls, chip supply chains) on growth.
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How investors adjust valuation expectations given elevated execution risk.
FAQs
Q1: Did Nvidia really report $57 billion in revenue?
Yes. Nvidia announced $57.0 billion in revenue for the quarter ended October 26, 2025, representing a 62% year-over-year increase.
Q2: What drove the revenue growth?
The main driver was Nvidia’s data-centre business, which generated $51.2 billion in revenue up 66% year-over-year fueled largely by demand for AI-training and inference infrastructure using Blackwell chips.
Q3: How did the market react?
Investors cheered the results. Nvidia’s stock rose around 3–4% in after-hours trading following the results, as analysts interpreted the print as powerful validation of the AI boom.
Q4: Is Nvidia concerned about an AI bubble?
Nvidia’s CEO Jensen Huang dismissed the notion of an AI bubble, stating that what’s happening is a structural transformation of computing, not a speculative fad.
Q5: What is Nvidia’s outlook for the next quarter?
Nvidia forecast approximately $65 billion in revenue for Q4, exceeding analyst expectations of roughly $62 billion.
Q6: What should investors look for next?
Key things to watch include whether Nvidia can maintain growth given supply constraints, how emerging chip architectures perform, regulatory or export-control risks, and whether demand remains robust across enterprise, cloud and consumer segments.