AI-infra and chipmaking firm Nvidia has just posted its Q3 2026 earnings report as per an official press release, at a time when investors and market participants keenly watch the AI sector, with a general fear and anticipation of a bubble.
Revenues for the quarter were a record figure of $57 billion, of which data center revenue was an overwhelming $51.2 billion. Total revenues for the company increased by 22% compared to Q2 2026. GAAP and Non-GAAP operating margins differed slightly at 73.4% and 73.6% respectively, while Earnings per share (diluted) stayed the same across both measures at $1.30.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” said CEO Jensen Huang.
“Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We’ve 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,” he also said.
While figures from data centers reflected a record high, the company’s gaming segment declined by 30% on a y-o-y basis to $4.3 billion
For its Q2 2026 fiscal quarter, NVIDIA posted revenues of $46.7 billion and $26.4 billion in profit.
The update comes after a flurry of deals, partnerships, and investments carried out this year, all aimed at growing its data center and AI infrastructure segment, and an ambitious forecast of $500 billion in annual revenue.
Some of Nvidia’s moves in 2025 to grow its presence include an alliance with Anthropic and Microsoft, a $100 billion commitment with OpenAI to create 10 gigawatts of AI compute and a product rollout of a Ruben CPX chip designed specifically for AI applications across coding and video.
Two investment companies gave up their stakes in the company before the report in entirety. Softbank sold a $5.8 billion stake and Peter Thiel’s fund, Macro Thiel, dumped its position of roughly half a million shares.
When asked about the possibility of an AI bubble in an earlier interview with Bloomberg, NVIDIA CEO Jensen said, “I don’t believe we’re in an AI bubble, and the reason for that is we’re going through a natural transition from an old computing model based on general-purpose computing to accelerated computing.”
“We also know that AI has become good enough because of reasoning, capability research, its ability to think, its now generating tokens and now generating intelligence that’s worth paying for,” he also said.
Nvidia shares closed on Wednesday at a price of $186.52, up by 2.85%.
