5 biggest takeaways from Nvidia’s Q3 earnings — from the AI bubble to new Saudi partnerships

Nvidia’s blockbuster earnings just brought relief to Wall Street.

On Wednesday, the chip giant reported $57 billion in revenue for the quarter and delivered another blowout performance from its data center division, which brought in $51 billion, surpassing the $49.3 billion analysts projected.

Nvidia also lifted its fourth-quarter guidance to expect $65 billion in sales. The optimistic outlook reinvigorated AI and semiconductor stocks after several rocky days. Nvidia stock jumped more than 3% in after-hours trading, while shares of other chipmakers, like Advanced Micro Devices, Broadcom, and Taiwan Semiconductor, also saw gains.

Here are the key takeaways from Nvidia’s Q3 earnings, from fear of an AI bubble to the various new partnerships the chipmaker is engaging in.

1. The AI bubble

CEO Jensen Huang addressed concerns about the AI bubble head-on.

“There’s been a lot of talk about an AI bubble,” he said as he kicked off his earnings address. “From our vantage point, we see something very different.”

“As a reminder, Nvidia is unlike any other accelerator,” Huang added. “We excel at every phase of AI, from pre-training and post-training to inference.”

Huang added that the transition from using CPUs to GPUs, AI’s ability to generate revenue through ads, and the rise of agentic AI systems that could spark a new wave of applications are all reasons he still sees growth in the coming years.

As an AI optimist, Huang had also previously dismissed concerns…