The OEM and Other segment recorded $174 million in revenue for the third quarter, up 79% year-over-year and 1% sequentially.
Nvidia expects another quarter of strong growth, so it guides revenue to $65 billion ±2% and GAAP gross margin of 74.8%. These results will be primarily driven by continued adoption of Blackwell and Blackwell Ultra platforms by various customers in the West. It is noteworthy that the company said nothing about sales of its AI GPUs to China, perhaps reflecting sentiment that this market has largely been lost for now.
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Anton Shilov Social Links Navigation Contributing Writer Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
alrighty_then Go big green! AI everywhere – bring it. I want to play a future videogame able to flesh out even the simplest NPC to be realistic in conversations with the power of AI behind every conversation. Reply
shady28 Odd that they say that they are sold out of GPUs, while I continue to see prices go down on Nvidia cards. Reply
George³ MergleBergle said: lol….I'm amazed how many people want to eat this guy's sausage Hmm, The vast majority of them are not women. What is happening to the world? 😀 Reply
hotaru251 reminder when bubble pops nvidias making world record on largest value lost in a single day. also going to be largely responsible for the fallout becasue of how massively overvalued it is an once crashes anything tied to stock market is being damaged (including some 401ks) Reply
Misgar all GPUs are sold outAnyone want to buy a used GeForce GT 630 or a GT 710 at very reasonable prices. I also have AGP and old PCI cards available. If I look really hard, I might even find an 8-bit ISA card (CGA or EGA perhaps). Reply
edzieba Take a look at the OEM segment: Switch 2 launched in Q2, so with Q3 & Q4 revenue flat (and being nearly flat prior to them) that ~60-75m jump is going to be pretty close to the entire Switch 2 SoC income. Or to put another way, Nintendo would need 700x-800x simultaneous Switch 2 launches for console revenue to match the Datacentre (which is not mostly 'AI') market. hotaru251 said: reminder when bubble pops nvidias making world record on largest value lost in a single day. also going to be largely responsible for the fallout becasue of how massively overvalued it is an once crashes anything tied to stock market is being damaged (including some 401ks) Whilst raw income will go down, margin probably won't change all that much. Nvidia don't own any large fabs or factories that will stop returning on investment, they don't have huge inventory stockpiles, and they will have more than made back their R&D spend with existing profits. If anything, an AI bubble pop would mean their main cost driver (wafer fab costs) will drop as demand plummets. Probably a headcount reduction would occur, but taking a margin hit could be an alternative if Nvidia want to retain talent and institutional knowledge. Unlike OpenAI et al, Nvidia has actual revenue and net profit today, rather than fantasy future revenue and massive losses from spending. Reply
rluker5 edzieba said: Whilst raw income will go down, margin probably won't change all that much. Nvidia don't own any large fabs or factories that will stop returning on investment, they don't have huge inventory stockpiles, and they will have more than made back their R&D spend with existing profits. If anything, an AI bubble pop would mean their main cost driver (wafer fab costs) will drop as demand plummets. Probably a headcount reduction would occur, but taking a margin hit could be an alternative if Nvidia want to retain talent and institutional knowledge. Unlike OpenAI et al, Nvidia has actual revenue and net profit today, rather than fantasy future revenue and massive losses from spending. If Nvidia's customers don't find a way to make the purchase of new GPUs profitable total sales will crash and with the same margins so will profits and stock value. Add to that with less demand the prices of the remaining sales of GPUs will drop reducing margins. The companies making products for the AI industry are making money and keeping the money they made. Those private companies buying the AI products are not making profits with those products and will slow their purchases. Governments buying them for monitoring us probably won't need to upgrade to the next model frequently making the sales one and done. There seems to be a competitive rush between model providers to become the "amazon" or "google" of A, but there wiIl just be one of those or they will just have smaller shares. The rush can't continue forever because it is costing a lot. Reply
jp7189 Though MS doesn't break out the numbers, indications point to copilot being profitable already. I saw news yesterday that OPS did a pilot that showed 3 hours saved per employee per week. That's easily worth $35 per month. As such, they bought a subscription for 15k employees. Reply
luissantos jp7189 said: Though MS doesn't break out the numbers, indications point to copilot being profitable already. I saw news yesterday that OPS did a pilot that showed 3 hours saved per employee per week. That's easily worth $35 per month. As such, they bought a subscription for 15k employees. That's profit for the consumer, not the provider. The question isn't whether people using OpenAI's products are benefitting financially, it's whether OpenAI's operational costs are lower than their income. Reply
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
- Powering AI Superfactories, NVIDIA and Microsoft Integrate Latest Technologies for Inference, Cybersecurity, Physical AI
- These 16 gadgets under $50 have upgraded my tech life, and most are already on sale for Black Friday
- Nvidia's fabled PCIe finger sells for under $25 in China, should you happen to break it — resuscitate your $10,000 GPU for less than a pair of fuzzy socks
- NVIDIA Wins Every MLPerf Training v5.1 Benchmark
- Into the Omniverse: How Smart City AI Agents Transform Urban Operations
Informational only. No financial advice. Do your own research.