Nvidia’s AI Dominance Continues as Data Center Revenue Soars 66%
Nvidia's latest earnings report silenced doubts about the sustainability of the AI boom. The chipmaker posted $57 billion in revenue for FQ3, a 62% year-over-year increase that exceeded analyst expectations by $1.91 billion. Driving this performance was the Data Center segment, which delivered record sales of $51.2 billion—a 66% annual jump.
Gross margins remained robust at 73.6%, though slightly down from the year-ago period as the company transitions between product generations. Adjusted EPS of $1.30 beat Street forecasts, demonstrating pricing power amid overwhelming demand for AI infrastructure. Cloud GPU capacity remains effectively sold out across all product lines.
The results underscore Nvidia's unassailable position in the AI hardware ecosystem. As Blackwell systems begin ramping up, the company appears well-positioned to maintain its technological and economic moat in semiconductor markets.
