Los Angeles, California – NVIDIA Corp reported record revenue for Q3, with a significant increase of 17% sequentially and a substantial rise of 94% year-on-year. The company exceeded its own outlook, achieving $35.1 billion in revenue. Data center revenue reached an all-time high of $30.8 billion, showing a 17% sequential increase and an impressive 112% year-on-year growth, propelled by the strong demand for NVIDIA Hopper and H200 products.

Furthermore, NVIDIA’s AI enterprise revenue is set to more than double from the previous year, with an expanding pipeline and annualizing software service and support revenue at $1.5 billion, projected to surpass $2 billion by year-end. The company is experiencing significant demand for its new Blackwell GPUs, with plans to exceed previous revenue estimates and enhance supply to meet customer needs.

Despite strong sell-through in Q3, NVIDIA is facing supply constraints in gaming, which may impact Q4 revenue. Gross margins are projected to moderate in the low 70s as Blackwell production ramps up, with potential configurations affecting profitability. Networking revenue, while showing strong year-on-year growth, experienced a sequential decline, indicating possible challenges in meeting demand for networking components.

Looking ahead, NVIDIA anticipates competitive market conditions in China due to export controls, which could potentially affect future data center revenue in the region. Moreover, concerns about potential digestion phases in hardware deployment cycles may impact growth as the market adjusts to new technologies. Jensen Huang, President and CEO, highlighted the company’s commitment to scaling for large language models and addressing concerns related to heating issues with Blackwell, reassuring stakeholders of NVIDIA’s ability to execute its roadmap.