"Blackwell sales are off the charts, and cloud GPUs are sold out," said Jensen Huang, founder and CEO of Nvidia. "Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We have entered the virtuous cycle of AI. The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once."
Nvidia's gaming segment generated $4.265 billion in the third quarter of the fiscal year, rising 30% YoY but slipping 1% sequentially, which was a surprise. Nvidia said channel inventories normalized ahead of the holiday season, though GPUs are normally strongest in the third quarter, so it looks like other factors were affecting sales of graphics cards. Nonetheless, at $4.265 billion, Nvidia's Q3 of FY2025 is the company's second-best quarter for consumer GPUs ever, suggesting the market has peaked for the company at this time.
While sales of GeForce RTX graphics cards were so strong in Q2 and Q3 that they could no longer grow, sales of professional visualization solutions increased to $760 million, rising 56% year-over-year and 26% sequentially, setting an all-time record for Nvidia and likely the whole industry. The improvement was driven primarily by the launch and ramp of the DGX Spark AI workstation platform and increased demand for Blackwell-based professional GPUs used in CAD, CAM, DCC, and various emerging creative workflows.
Nvidia's Automotive and Robotics revenue reached $592 million in Q3 FY2026, increasing 32% year-over-year and 1% sequentially, which was driven by continued adoption of the company’s self-driving platforms. During the quarter, Nvidia announced that its next-generation Drive AGX Hyperion 10 Level 4-capable vehicle platform has been adopted by major partners, including Uber, so expect this segment to become even more important for the company going forward.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/gpus/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/gpus/nvidias-revenue-skyrockets-to-record-usd57-billion-per-quarter-all-gpus-are-sold-out#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.