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

Core Insights - Nvidia's third-quarter earnings reflect strong growth, with revenue reaching $57 billion, a 62% increase year-over-year, and net income of $32 billion, up 65% from the previous year, surpassing Wall Street expectations [1][2] Revenue Breakdown - The data center business generated a record revenue of $51.2 billion, marking a 25% increase from the previous quarter and a 66% increase year-over-year. The gaming business contributed $4.2 billion, while professional visualization and automotive sales accounted for the remaining $1.6 billion [2] Business Drivers - The data center business is driven by the acceleration of computing, powerful AI models, and agentic applications, with Nvidia announcing AI factory and infrastructure projects totaling 5 million GPUs in the last quarter [3] Market Demand - Demand for Nvidia's products spans various markets, including cloud service providers, sovereign entities, modern enterprises, and supercomputing centers. The Blackwell Ultra GPU has seen particularly strong sales, with overall demand for Blackwell architecture remaining robust [4] AI Ecosystem Growth - The company has entered a "virtuous cycle of AI," with exponential growth in compute demand for training and inference, as the AI ecosystem rapidly scales across industries and countries [4] Geopolitical Challenges - Nvidia faced challenges in shipping its H20 data center GPU to China, with shipments totaling 50 million units, which was below expectations due to geopolitical issues and increased competition in the Chinese market [5]