Nvidia shares rose on Thursday after the chip giant reported earnings that beat estimates and provided much-needed reassurance that the demand for AI compute was still rising.
Nvidia posted record revenue of $57.0 billion for the third quarter ended October 26, 2025. The figure represents a 22% increase from the previous quarter and a 62% jump year-over-year.
Data Center revenue drove performance, reaching $51.2 billion, up 25% quarter-on-quarter and 66% year-on-year.
Nvidia saw strong demand for its cloud solutions, which the company said had sold out.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” said Jensen Huang, founder and CEO of NVIDIA.
The company maintained strong profitability with gross margins of 73.4% on a GAAP basis and 73.6% on a non-GAAP basis. Earnings per diluted share came in at $1.30 for both measures.
Nvidia returned $37.0 billion to shareholders through share repurchases and cash dividends during the first nine months of fiscal 2026, which is equivalent to Tesco’s entire market cap.
“Nvidia bears the weight of the world, but like Atlas, it’s standing firm under that towering mountain of expectations. Third quarter results delivered the goods and then some, a 4% beat on the top and bottom line came with a side of more good news in the form of a monster $65 billion revenue guide for the fourth quarter,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“While AI valuations are dominating the news feeds, Nvidia is going about its business in style. There are certainly pockets of the AI space where valuations needed to take a breather, but Nvidia is not in that camp. In fact, while shares have performed well this year, the valuation has gotten more attractive as earnings growth has raced ahead.”
Britzman was also upbeat on Nvidia’s outlook, pointing to the group’s dominance and a deep moat that protects its valuation.
“Looking ahead to next year, demand isn’t in question, Nvidia already has a massive backlog of orders. What’s new is that its market dominance is facing scrutiny.
“Key customers are exploring viable alternatives, at least on paper, as they seek faster compute and diversification away from a single supplier. The real question is how those alternatives stack up. Designs and promises of similar performance are one thing; track record at scale is another, and no one matches Nvidia there. Its breadth remains underrated: a full data center business spanning chips, software, networking, and more. Even if rivals can offer parts of the stack, Nvidia’s fully integrated solution will be hard to beat.”