Takeaways by Saasverse AI
- $57.01B Revenue (+62%) | $31.91B Net Income (+65%) | $51.2B Data Center Revenue (+66%)
- AI-Driven Growth: Unprecedented demand for Nvidia's Blackwell Ultra GPUs fueled record-breaking sales in cloud and AI markets, with over $500B in orders secured.
- Market Momentum: Stock surged 5% post-earnings; new partnerships with xAI and Brookfield Asset Management highlight Nvidia's leadership in AI infrastructure.
Nvidia once again shattered expectations with its Q3 FY2026 earnings, reporting $57.01 billion in revenue—a 62% year-over-year increase—and a net income of $31.91 billion, up 65%. Central to this remarkable performance was the company's data center business, which generated $51.2 billion in revenue, marking a 66% growth from the prior year. This surge was driven by robust demand for Nvidia's Blackwell Ultra chips, which are critical for training and inference in generative AI applications.
CEO Jensen Huang highlighted the exponential acceleration in AI computing needs, stating, "Blackwell series GPUs have set sales records, and our cloud GPU inventory is fully sold out. The ecosystem for AI is expanding rapidly, with foundational model developers and startups scaling across industries and geographies." By year-end 2026, Nvidia has secured over $500 billion in orders, underscoring the sustained demand for AI infrastructure. Tech giants like Microsoft, Google, AWS, and Meta are collectively expected to invest more than $380 billion in AI data centers within the year.
Beyond its data center dominance, Nvidia reported growth across other key segments. Gaming revenue rose to $4.3 billion, a 30% increase year-over-year, while professional visualization revenue grew 56% to $760 million. The automotive and robotics division also made strides, with revenue climbing 32% to $592 million. However, legacy chip sales in China contributed a modest $50 million, reflecting the impact of U.S. export restrictions on advanced AI hardware.
Nvidia also unveiled two significant partnerships that reinforce its leadership in AI infrastructure. First, the company is collaborating with Elon Musk's xAI and Saudi-backed Humain to develop a 500MW data center equipped with 600,000 Nvidia GPUs. This project, pivotal for Saudi Arabia's AI strategy, aims to reduce reliance on foreign cloud providers while granting xAI priority access to massive compute resources. Second, Nvidia joined forces with Brookfield Asset Management on a $100 billion AI infrastructure initiative. This ambitious plan, supported by Nvidia and Kuwait Investment Authority, will fund the development of data centers, power infrastructure, and computation resources globally.
The market responded positively to Nvidia's stellar performance and strategic announcements, with shares surging over 5% in after-hours trading. The company's stock has been a standout performer, rising 239% in 2023, 171% in 2024, and 38.9% year-to-date in 2025. Nvidia's market cap now stands at $4.53 trillion, reclaiming its position as the world's most valuable publicly traded company, ahead of Apple ($3.98 trillion) and Microsoft ($3.62 trillion).
Looking ahead, Nvidia projects Q4 FY2026 revenue of $65 billion, further cementing its status as a cornerstone of the AI and cloud computing industries. With its CEO Jensen Huang now ranked as the world's eighth-richest individual, boasting a net worth of $162 billion, Nvidia's trajectory continues to redefine benchmarks in both financial performance and technological innovation. Saasverse anticipates that the company's leadership in AI hardware and strategic partnerships will sustain its momentum, even as competition in the AI chip market intensifies.