Core Viewpoint - Nvidia's latest earnings report for the third quarter of fiscal year 2026 significantly exceeded expectations, showcasing strong revenue growth and robust guidance for the upcoming quarter, alleviating concerns about an "AI bubble" in the market [3][6]. Financial Performance - For the third quarter of fiscal year 2026, Nvidia reported revenue of $57.01 billion, representing a substantial year-over-year increase of 62%, surpassing analyst expectations of $55.19 billion [3][4]. - Adjusted operating profit reached $37.75 billion, also up 62% year-over-year, exceeding the forecast of $36.46 billion [4]. - Research and development expenses increased by 39% year-over-year, while the market had anticipated a 46% rise [4]. Profitability Metrics - The adjusted gross margin was reported at 73.1%, reflecting a year-over-year increase of 1.4 percentage points, although slightly below the analyst expectation of 73.7% [5]. Future Guidance - For the fourth quarter of fiscal year 2026, Nvidia expects revenue to be around $65 billion, which is above market expectations [7]. - The adjusted gross margin is projected to be between 74.5% and 75.5%, with the median analyst expectation at 74.6% [8]. Market Demand and Product Performance - Nvidia's CEO highlighted that the sales of the latest Blackwell architecture chips have exceeded expectations, with cloud GPUs sold out [9]. - The demand for computing in both training and inference areas is accelerating, with both showing exponential growth [9]. - The AI ecosystem is rapidly scaling, with an increasing number of new foundational model developers and AI startups emerging across various industries and countries [10][11]. Product Insights - The best-selling chip series currently is the Blackwell Ultra, which is the second generation of Blackwell chips, with demand consistently exceeding expectations [13]. - Nvidia anticipates $500 billion in revenue from the Blackwell and Rubin projects [13]. - The A100 GPUs, released six years ago, are still operating at full capacity, indicating an extended lifespan for GPUs [13]. - The Rubin chip is expected to enter mass production in the second half of 2026 [13].

Core Viewpoint - Nvidia's latest earnings report for Q3 FY2026 shows a significant revenue increase of 62% year-over-year, reaching $57.01 billion, surpassing analyst expectations and alleviating concerns about an "AI bubble" [2][3][4]. Financial Performance - Nvidia reported Q3 FY2026 revenue of $57.01 billion, a 62% increase compared to the previous year, exceeding the analyst forecast of $55.19 billion [3][7]. - The data center segment contributed $51.2 billion in revenue, marking a 66% year-over-year growth, also above analyst expectations [3][7]. - Adjusted earnings per share for Q3 were $1.30, with an adjusted operating profit of $37.75 billion, both significantly higher than market predictions [3][4]. - The adjusted gross margin for Q3 was 73.6%, slightly below analyst expectations of 73.7% [3][4]. Future Guidance - For Q4 FY2026, Nvidia expects revenue to be around $65 billion, with a margin of fluctuation of 2% [4]. - The company anticipates an adjusted gross margin of 75%, which is above the analyst median expectation of 74.6% [4]. Market Reaction - Following the earnings report, Nvidia's stock surged over 6% in after-hours trading, with other AI-related stocks also experiencing gains [2][4]. - Nvidia's stock price increased by 2.85% to $186.52 during regular trading hours, and further rose to $196.80 in after-hours trading [5][4]. Business Insights - Nvidia's CEO, Jensen Huang, stated that the latest Blackwell architecture chips are selling far beyond expectations, with all cloud server GPUs sold out [2][11]. - The demand for Nvidia's high-end GPUs is driven by major tech companies like Microsoft, Amazon, Google, Oracle, and Meta, as they accelerate the development of AI models and computing clusters [10][11]. - Nvidia repurchased $12.5 billion worth of stock and paid $243 million in dividends during Q3 [8]. Strategic Outlook - Nvidia's CFO, Colette Kress, indicated that the market demand for AI infrastructure continues to exceed expectations, with potential revenue of $500 billion from the Blackwell and Rubin projects [12]. - The company is collaborating with OpenAI to build and deploy AI data centers with a total power exceeding 10 gigawatts [13].