By Harsh Chauhan
Publication Date: 2025-11-27 14:00:00
The GPU leader delivered better-than-expected results, and its guidance suggests that its impressive growth is not over.
Any concerns about the health of the artificial intelligence (AI) industry were put to rest on Nov. 19 when Nvidia (NVDA +1.42%) released its fiscal 2026 third-quarter results (for the three months that ended Oct. 26).
Nvidia is an AI bellwether as its graphics processing units (GPUs) and other products are critical parts of the data center infrastructure that’s needed to run AI workloads. So, the company’s better-than-expected results were just what the AI sector needed at a time when concerns have been growing that AI stocks are in a bubble.
Here’s why Nvidia’s latest quarterly report suggests that the AI market’s growth isn’t going to cool down any time soon.
Image source: Nvidia
AI computing demand continues to outpace supply
Nvidia sells GPUs and rack-scale systems that integrate multiple GPUs, central processing units (CPUs), memory chips, and cooling systems onto a single platform. These chips and systems go into data centers where they are deployed in massive volumes by hyperscalers, cloud computing companies, and AI companies to run AI models and inference applications.
Nvidia is the leading player in the AI chip market by quite some distance. So the terrific 66% year-over-year increase in its data center revenue last quarter to a record $51.2 billion is proof that the demand for AI chips is robust. What’s more, CEO Jensen Huang pointed out…
