Nvidia's record $57B revenue and upbeat forecast quiets AI bubble talk

Core Viewpoint - Nvidia's third-quarter earnings report indicates strong growth driven by its data center business, with significant revenue and profit increases compared to the previous year [1][2][6]. Financial Performance - Nvidia reported a revenue of $57 billion for the fiscal third quarter, a 62% increase year-over-year [1]. - The company's net income on a GAAP basis was $32 billion, reflecting a 65% year-over-year increase [1]. - Both revenue and profit exceeded Wall Street expectations [1]. Data Center Business - The data center business generated a record revenue of $51.2 billion, up 25% from the previous quarter and 66% from a year ago [2]. - The demand for Nvidia's GPUs is broad, spanning various markets including cloud service providers, sovereign entities, and supercomputing centers, with a total sale of 5 million GPUs [3]. Product Demand - The Blackwell Ultra GPU, launched in March, has become a leading product for the company, with strong ongoing demand for previous versions of the Blackwell architecture [4]. - Sales of Blackwell GPU chips are described as "off the charts," with cloud GPUs reportedly sold out [6]. Future Outlook - Nvidia forecasts a revenue of $65 billion for the fourth quarter, contributing to a more than 4% increase in share price during after-hours trading [6]. - The company emphasizes a continuous growth trajectory, dismissing concerns about a market bubble and highlighting the accelerating demand for AI technologies [7].