Nvidia revenue tops expectations, forecasts beat Blackwell fears
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The news: Nvidia quarterly earnings narrowly beat revenue expectations and, perhaps more importantly amid fears around its supply chain, so did its guidance for the next quarter.
Nvidia founder and chief executive Jensen Huang said its next line of chips, Blackwell, had entered "full production", allaying fears that a design flaw would disrupt output.
The numbers: Nvidia generated USD35 billion in revenue, with earnings-per-share at USD0.78 ($1.20) about 4% higher than analyst expected. It's a 14% quarter-on-quarter jump.
As expected, most of that came from the tech giant's data centre business. Chips supplied to data centres made USD30.7 billion, with gaming, until recently Nvidia's bread and butter, bringing in USD3.27 billion.
Revenue for the current quarter, which for Nvidia means late October to late January and will include Blackwell sales, is forecasted to be USD37.5 billion, above the USD37.1 billion consensus on Wall Street, according to Bloomberg data.
Nvidia shares were down 1.78% to $143.24 during after hours trading.
The context: Nvidia's earnings have been the among Wall Street's biggest events over the past few years, but this one was particularly closely watched. That's because of expectations around Blackwell, a line of processors that are the successor to the Hopper chips (like the H100) that rocketed the company's market value from USD650 billion to where it is today.
Blackwell products are expected to hit the market in Nvidia's current quarter. Demand for Nvidia's AI chips is not in doubt, but supply has been after The Information reported that some Blackwell units have been overheating due to a design flaw.
What they said: “The age of AI is in full steam, propelling a global shift to NVIDIA computing,” Huang said. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pre-training, post-training and inference."
Nonetheless, chief financial officer Colette Kress warned investors that, like Hopper before it, Nvidia won't be able to make enough Blackwell processors to meet the immense demand.
Both Hopper and Blackwell systems have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026," she said.
The sources: Nvidia, Bloomberg, The Information
