Nvidia CEO Jensen Huang said the company is heading into a "crazy good" fiscal fourth quarter after third-quarter sales accelerated 62%—the first uptick in seven quarters—with data-center revenue of $51.2 billion versus $48.62 billion expected; Nvidia guided Q4 revenue of $65 billion ±2% (consensus $61.66 billion) and projected a roughly 75% gross margin, targeting mid-70s for fiscal 2027. Huang downplayed concerns about an AI bubble and circular funding with partners, saying Nvidia has not made the touted investments and that leading AI firms do not depend on its capital, while reiterating about $500 billion in advanced-chip bookings through 2026. The results and upbeat outlook sent Nvidia shares up ~5% in extended trading—adding roughly $220 billion in market value—boosting peers and futures, though regulatory headwinds such as a reported China antitrust claim remain a potential risk.
Nvidia reported third-quarter revenue up 62%, its first acceleration in seven quarters, with data-center sales of $51.2 billion versus analyst expectations of $48.62 billion and fiscal fourth-quarter revenue guidance of $65 billion ±2% compared with a $61.66 billion consensus. The company forecast an adjusted gross margin of ~75% (±50 bps) and reiterated a plan to sustain mid-70s margins into fiscal 2027, supporting the high-margin profile behind its data-center business. Shares jumped about 5% in extended trading, adding roughly $220 billion in market value, reflecting investor relief that AI spending may be tracking fundamentals rather than a pure bubble. CEO Jensen Huang framed the result as the start of a multi-year infrastructure build-out in accelerated computing and reiterated a $500 billion bookings figure through 2026 while saying Nvidia has not yet deployed the investments cited and that leading AI firms’ funding rounds have been oversubscribed. That commentary supports durable secular demand for Nvidia’s GPUs but leaves timing and cash deployment uncertain. Market structure and regulatory risks temper the bullish signal: Nvidia is the largest S&P 500 stock and represents ~10% of QQQ and ~8% of SPY/VOO, amplifying index concentration effects; the report also noted a reported China antitrust claim and recent volatility (shares slid nearly 8% earlier in November). Realization of the $500 billion bookings, next-quarter execution against the aggressive guide, and any escalation of anti-competition scrutiny are the key near-term catalysts and risks investors should watch.
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