NVIDIA has reported its Q3 earnings, and it won't be wrong to say that the firm has 'validated' that the AI bandwagon is still up and running, credited to Blackwell and Rubin systems.
NVIDIA Sees Record QoQ Growth With Revenue From DC/AI, Driven By Mass Adoption of Blackwell Systems
While the world discusses the 'AI bubble' popping, it appears that Jensen & Co. has other plans for the future of the AI world, as evidenced by NVIDIA's recent Q3 earnings report, a $57 billion quarterly revenue, up 22% QoQ. Moreover, Team Green projects a revenue uptrend for the upcoming quarters as well, with Q4 FY2026 projected to bring in $65 billion. Speaking at the earnings occasion, NVIDIA's CEO Jensen Huang says that the firm is seeing 'record-level' demand for Blackwell systems, and it appears that the AI industry, coupled with three fundamental scaling laws, has taken compute requirements to new levels.
While the AI front is 'roaring' for Team Green right now, there's a slight hiccup on the gaming front, as NVIDIA reported a 1% QoQ decline for consumer GPU sales, associating it with "channel inventories" getting normalized in the current season, but this is something odd, considering that the Q3-Q4 timeline usually marks a great time for gaming GPU sales, amid consumer upgrade cycle and the ongoing deals season. The 1% decline isn't too large to associate with the lack of interest around NVIDIA GPUs, and regardless of it, NVIDIA did see a 30% YoY rise in gaming revenue, so it's still a win for the company.
One of the bigger questions around NVIDIA's revenue for the upcoming quarters was around how the firm would meet the '$500 billion' projection made by CEO Jensen Huang at GTC Washington. And interestingly, the firm's CFO, Colette Kress, talked about this at the Q3 earnings call, and here's what she had to say:
We are working into our $500 billion forecast. And we are on track for that as we have finished some of the quarters, and now we have several quarters now in front of us to take us through the end of calendar year '26. The number will grow. And we will achieve, I'm sure, additional needs for compute that will be shippable by fiscal year '26.
It won't be wrong to say that Rubin will be responsible for a larger chunk of the $0.5 trillion in revenue that NVIDIA expects in 2026, as customer adoption of the platform is expected to be significantly higher than that of Hopper and Blackwell. Of course, there are still skeptics who question how NVIDIA will achieve this sales figure, but Team Green says that demand is there, citing the 400K-600K GPU orders from Saudi Arabia. Therefore, NVIDIA appears to be more confident than ever that its QoQ revenue will be on a rapid rise.
The revenue figures NVIDIA has reported for Q3 include no customers from China, despite having "sizeable" customers in the region. Therefore, most of the current computing demand is driven by CSPs and the buildout from AI companies such as OpenAI. The future indeed looks bright and green for NVIDIA and the AI industry.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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