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

• Nvidia’s Q3 earnings beat expectations, driven by strong data center and AI demand.

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

• Export restrictions on China and rising competition remain concerns for Nvidia’s growth.

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

On Wednesday, the chip giant reported $57 billion in revenue for the quarter and delivered another blowout performance from its data center division, which brought in $51 billion, surpassing the $49.3 billion analysts projected.

Nvidia also lifted its fourth-quarter guidance to expect $65 billion in sales. The optimistic outlook reinvigorated AI and semiconductor stocks after several rocky days. Nvidia stock jumped more than 3% in after-hours trading, while shares of other chipmakers, like Advanced Micro Devices, Broadcom, and Taiwan Semiconductor, also saw gains.

Here are the key takeaways from Nvidia’s Q3 earnings, from fear of an AI bubble to the various new partnerships the chipmaker is engaging in.

CEO Jensen Huang addressed concerns about the AI bubble head-on.

“There’s been a lot of talk about an AI bubble,” he said as he kicked off his earnings address. “From our vantage point, we see something very different.”

“As a reminder, Nvidia is unlike any other accelerator,” Huang added. “We excel at every phase of AI, from pre-training and post-training to inference.”

Huang added that the transition from using CPUs to GPUs, AI’s ability to generate revenue through ads, and the rise of agentic AI systems that could spark a new wave of applications are all reasons he still sees growth in the coming years.

As an AI optimist, Huang had also previously dismissed concerns that AI could displace a large number of jobs.

Nvidia gave its new partnerships a big shoutout.

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

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

On Tuesday, Nvidia struck a “deep technology partnership” with Anthropic and pledged up to $10 billion in investment for the startup. Anthropic also announced on the same day that it would spend $30 billion on compute to scale its Claude AI model on Microsoft’s Azure cloud platform, which would be “powered by Nvidia.”