Record Sales and Strong Demand Signal Robust Growth Amid Continued AI Expansion
Nvidia reported record revenue of $57 billion for Q3 fiscal 2026 and forecasts Q4 revenues between $63.7 billion and $66.3 billion, substantially above analysts’ estimates of $61.98 billion. The strong outlook eases fears of an AI bubble bursting.
Nvidia’s CEO Jensen Huang emphasized skyrocketing demand for the Blackwell AI chips and cloud GPUs, which are nearly sold out. He called the momentum a “virtuous cycle” of AI adoption, with exponential growth in AI model training and inference workloads.
The company’s Q3 revenue marked a 22% increase quarter-over-quarter and a 62% rise year-over-year. Data center revenue reached $35.6 billion, up 16% from the previous quarter, accounting for the vast majority of growth tied to AI workloads.
Despite ongoing U.S. export restrictions limiting sales to China, Nvidia maintains dominance with over 90% market share in AI accelerator chips and is expanding through complementary products like AI networking and software platforms.
Industry analysts remark that Nvidia’s forecast is roughly 10 times Q4 revenues from three years ago, highlighting the transformative impact of AI on its business.
Shares surged 5% after market close following the report, reflecting investor confidence in Nvidia’s growth trajectory within an increasingly competitive market.
The robust demand and lucrative outlook counter arguments of an overheated market, suggesting sustainable AI industry expansion.
Nvidia’s results underscore the critical role of AI chips in powering next-generation applications across sectors, with expectations for the AI chip market to reach over $500 billion in revenue by 2026.
