Nvidia's cloud GPUs sold out, revenue and profits continue to rise

Nvidia is defying the doomsayers about overheated AI stocks and has continued to increase its revenue in the past quarter. "Blackwell sales figures are phenomenal, and cloud GPUs are sold out," Nvidia CEO Jensen Huang is quoted as saying. Demand for AI chips remains unabated, thus making the cash registers ring. As Nvidia's business figures exceed industry expectations, its share price is also rising again.

Because in the last few days before the Nvidia quarterly results, the stock market was nervous, stock prices of AI and chip stocks tumbled. Investors feared the bursting of the AI bubble, but Huang has now dismissed this in a conversation with investors. "From our perspective, we see something completely different," he explained after the announcement of the quarterly figures. According to him, Nvidia's order books are full and all produced AI chips are sold or delivered immediately.

Revenue and profits rise by more than 60 percent

This led to Nvidia according to its own statements increasing revenue in the third quarter of fiscal year 2026, which ended in October, by 62 percent year-on-year to 57 billion US dollars. Market observers had, according to CNBC, expected revenue of 54.9 billion dollars. Revenue also grew compared to the previous quarter, but by only 22 percent. This means Nvidia has recorded revenue growth for the twelfth consecutive quarter.

Operating profit even rose by 65 percent year-on-year to 36 billion dollars, and net profit in the same period also rose by 65 percent to 31.9 billion dollars. Compared to the previous three months, profits grew by 27 and 21 percent, respectively. However, Nvidia's operating expenses rose by almost 35 percent year-on-year in the past quarter due to higher investments. This put some pressure on the enormously high net margin, which fell from 74.6 to 73.4 percent in the same period. Nvidia attributes this to the transition from the previous Hopper-HGX systems to the new Blackwell generation for data centers.

Nvidia's data center segment remains the revenue driver. Here, revenue increased by 66 percent year-on-year to 51.2 billion dollars. The networking division integrated into this segment accounts for a smaller portion of this business segment compared to AI accelerators, but its revenue more than doubled year-on-year -- from 3.1 billion dollars in the previous year to 8.2 billion dollars now.

Growth in all areas, including the outlook

The gaming segment, including products for AI PCs, generated revenue of 4.3 billion dollars. While this is one percent less than in the previous quarter, it is 30 percent more than a year ago. Nvidia's other business segments remain below the billion-dollar mark in terms of revenue, but are also growing. "Professional Visualization" increased by 56 percent year-on-year to 760 million dollars, and "Automotive and Robotics" by 32 percent to 592 million dollars.

For the current fourth quarter of fiscal year 2026, Nvidia expects revenue of around 65 billion dollars (+/- 2 percent). This would represent an annual increase of 65 percent. Since analysts had only expected 61.7 billion dollars, Nvidia's stock made a small leap. After the price had already risen by almost 3 percent during the day, the value jumped by another 5 percent after the stock market closed.

(fds)