Nvidia reported record revenue and beat Wall Street expectations. AI stocks rose

Nvidia beat Wall Street forecasts for revenue and earnings last quarter and gave a stronger-than-analysts-expected outlook for the current quarter. The report of the AI sector flagship is being closely watched by investors, as the company has become a kind of indicator of its prospects. Major U.S. market indexes have declined for several consecutive sessions on concerns that Nvidia would not be able to meet its inflated guidance. Instead, it reported revenue growth of 65% to a new record.

Nvidia beat Wall Street forecasts for revenue and earnings in the third quarter of fiscal 2026, which ended Oct. 26. The chipmaker reported on Nov. 19 that its revenue rose 65% year-over-year to a record $57.01 billion. Analysts, according to LSEG, had expected the figure to be $54.92 billion, CNBC reported. Adjusted earnings per share reached $1.3, while Wall Street was expecting $1.25.

In the current quarter, Nvidia expects its revenue to grow to $65 billion plus or minus 2%. Even the lower end of that range - $63.7 billion - exceeds analysts' consensus estimate; they predicted $61.66 billion, CNBC notes. It was the strong sales forecast that boosted the chipmaker's shares after the report was published, Bloomberg believes .

The key area for Nvidia remains the supply of equipment for data centers. Revenue in this segment for the year added 66% and also broke the record, amounting to $51.2 billion. AI chips accounted for $43 billion of this amount, while the sale of equipment that allows connecting hundreds of chips into one computing cluster brought $8.2 billion.

The company highlights robotics as one of its most promising growth areas. Sales in the Automotive Solutions and Robotics division grew 32% last quarter to $592 million.

"Blackwell sales are breaking records and cloud GPUs are sold out," said company CEO Jensen Huang in a press release. - Demand for computing continues to accelerate and accumulate in both learning and inferencing - both growing exponentially. We have entered a favorable AI development cycle. The AI ecosystem is scaling rapidly: more new foundational model builders, more AI startups, in more industries and countries. AI is doing everything, everywhere and at once."

So, commenting on a conference call with investors about the Anthropic deal , which will see Nvidia invest up to $10 billion in the AI startup, Huang noted that all the big AI models are now powered by Nvidia's technology. "We're running them all," he said.

Nvidia stock jumped almost 5.7% in the postmarket. Other AI-related stocks also rose in price.

- Shares of cloud computing provider CoreWeave rose 7% in extended trading, Nebius rose 5%, and cloud giant Oracle gained - 2.5% in extended trading

- Shares of chipmakers AMD and Micron rose by about 2.7%, Broadcom - by 2.2%. Quotes of the contract manufacturer of Nvidia chips - Taiwan Semiconductor added 2.7%, and the assembler of servers based on these processors - Super Micro Computer - 4.2%.

- Shares of Palantir, an AI developer for military and civilian companies, rose 3.2%.

- U.S. stock index futures are on the plus side, with exchange-traded contracts on the tech-heavy Nasdaq Composite jumping as much as 1.5% immediately, but then trimming the gains slightly. A fund tracking the Nasdaq 100 index added 1% in the extended session, while a fund focused on the semiconductor sector rose 2.9%, Bloomberg reports.

Nvidia did not mention sales of H20 chips to China in the report, Bloomberg pointed out. In August, when the company published a forecast for the third quarter, it specified that it did not include shipments to this country in the calculations, although the U.S. government had previously promised to approve them. During a conference call on November 19, Nvidia CFO Colette Kress said that the new forecast also does not include revenue from the Chinese market.

Kress revealed that the company was unable to do any meaningful business in China in the third quarter due to "geopolitical factors and increasing competition" in the country. That could mean that Nvidia had the necessary approvals to sell H20 chips, Bloomberg suggests, but shipments never resumed. And the next generation of chips designed specifically for this market is still in question at this stage, the agency writes. Kress says the company is working to find ways to bring "more competitive data center computing products" to China.

"This is a near-perfect report and forecast," wrote Kathleen Brooks, director of research at XTB, she was quoted as saying by Bloomberg. - They show that demand for Nvidia products will continue to grow and may exceed expectations."

Nvidia "beat" the two key metrics that most worried investors: forecasting revenue in the neighborhood of $65 billion and a gross margin of 74.8 percent for the current quarter, Wedbush Securities analyst Matt Bryson told Bloomberg.

Strong third-quarter results and a particularly upbeat outlook for the fourth quarter were both above consensus and better than most major investors' expectations, pointing to a faster chip ramp-up for the latest GB300 chip, said Kunjan Sobhani, senior technology analyst at Bloomberg Intelligence. "Against the backdrop of expanding AI infrastructure and an improving supply-demand balance, the determining factors for sustaining positive sentiment will be the transparency of the $500 billion [chip] supply plan through fiscal 2027, major deals to expand the

Dan Morgan of Synovus Trust reminded that before the report was published, investors were concerned about the justification of multi-billion-dollar capex on AI, issues of "cyclical" financing and increasing competition. "These issues have not been resolved, but the results give investors confidence that Nvidia continues to perform at a very high level. Issues can be deferred until the fourth quarter reporting for now," the analyst cautioned.

Vital Knowledge said the report "should quiet the skeptics and help pave the way for a year-end rally."

This article was AI-translated and verified by a human editor