Nvidia Reports Record Revenue, Alleviates AI Bubble Concerns
Nvidia has recently reported staggering figures that may calm fears surrounding an impending artificial intelligence (AI) bubble. In its fiscal third-quarter earnings for 2026, the company announced a record revenue of $57 billion, marking a 62% increase compared to the previous year and a 22% sequential rise. Most of this revenue stemmed from its data center sales, which alone accounted for $51.2 billion, representing a remarkable 66% year-over-year growth.
The company’s gross margin was an impressive 73.4%, translating to a net income of $31.9 billion, up 65% from last year’s results. Additionally, earnings per share surged by 67% compared to last year, reaching $1.30.
CEO Jensen Huang expressed optimism regarding the future, stating, “Blackwell sales are off the charts, and cloud GPUs are sold out. Compute demand keeps accelerating and compounding across training and inference – each growing exponentially. We’ve entered the virtuous cycle of AI.” He emphasized that the AI ecosystem is expanding rapidly with more startups and new foundation model makers emerging across various industries.
Future Projections and Partnerships
Nvidia’s guidance for the upcoming fourth quarter suggests an expected revenue of $65 billion, with gross margins anticipated to improve between 74.8% and 75%. The company has secured crucial contracts with notable organizations such as OpenAI, which utilizes at least 10 gigawatts of Nvidia architecture, and Anthropic, which has recently committed to building a gigawatt of compute power using Nvidia’s chips.
Additionally, partnerships with tech giants like Alphabet’s Google Cloud, Microsoft Azure, and Oracle reinforce Nvidia’s position in the AI infrastructure landscape. The company’s stock surged 4% in after-hours trading following the earnings report, reflecting investor confidence. Other significant AI stocks also saw an uptick, with Advanced Micro Devices increasing by 3%, Broadcom by 2%, and Palantir Technologies by 2.5%.
The Implications for the Technology Sector
Nvidia’s robust performance may have provided the much-needed boost to the tech sector, which has seen fluctuations in recent weeks. After an exceptional 20% gain in the first 10 months of 2025, the sector recently leveled off. With Nvidia’s ongoing strength and positive forecasts, concerns about a potential AI bubble could dissipate quickly.
As the demand for AI technologies continues to surge, Nvidia’s recent earnings highlight the company’s vital role in shaping the future of this rapidly evolving industry. Investors and analysts alike will be keenly watching how these developments unfold in the coming quarters.
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