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

• Nvidia’s third-quarter earnings beat expectations, driven by strong data center and AI demand.

• New partnerships with OpenAI, Uber, and xAI underscore Nvidia’s leadership in artificial intelligence.

• Export restrictions and increased competition from China remain concerns for Nvidia’s growth.

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

The chip giant on Wednesday reported $57 billion in revenue for the quarter, delivering another breakout performance from its data center division, which brought in $51 billion in revenue, ahead of the $49.3 billion analysts had predicted.

Nvidia also raised its fourth-quarter forecast to $65 billion in sales. The optimistic outlook has revived artificial intelligence and semiconductor stocks after a few tough days. Nvidia shares rose more than 3% in after-hours trading, while shares of other chipmakers such as Advanced Micro Devices, Broadcom and Taiwan Semiconductor also rose.

From AI bubble fears to several new partnerships the chipmaker is involved in, here are the key takeaways from Nvidia’s third-quarter earnings.

CEO Jensen Huang expressed concerns artificial intelligence bubble directly.

“There’s been a lot of talk about the AI ​​bubble,” he said as he kicked off his earnings call. “We’re seeing something very different from our perspective.”

“As a reminder, Nvidia is not like other accelerators,” Huang added. “We are successful at every stage of artificial intelligence, from pre-training and post-training to inferences.”

Huang added that the shift from CPU usage to GPUs, AI’s ability to generate revenue through ads, and the rise of agency AI systems that could fuel a new wave of applications are reasons why it will still see growth in the coming years.

As an AI optimist, Huang also previously dismissed concerns that AI could replace large numbers of jobs.

Nvidia has shown great interest in its new partnerships.

On the earnings call, Nvidia highlighted new deals with OpenAI, Anthropic, Uber and xAI.

In early September, Nvidia announced a joint letter of intent with OpenAI “for a landmark strategic partnership that will deploy at least 10 gigawatts of Nvidia systems for OpenAI’s next-generation AI infrastructure to train and run next-generation models on the path to deploying superintelligence.” According to the press release, the plan is for Nvidia to invest as much as $100 billion in data center infrastructure using Nvidia hardware to come online starting in the second half of 2026.

On Tuesday Nvidia dealt a blow”deep technology partnershipAlong with Anthropic, it has pledged to invest up to $10 billion in the venture. Anthropic also announced the same day that it would spend $30 billion on computing to scale its Claude AI model on Microsoft’s Azure cloud platform, which “will be powered by Nvidia.”