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NVIDIA (NVDA +3%) is higher today after delivering a robust Q3 (Oct) beat-and-raise, easing concerns about a slowdown in AI infrastructure spending. Notably, the quarter showed strength despite negligible H20 sales and the company's Q4 (Jan) revenue guidance excludes all Data Center compute revenue from China—yet still came in far ahead of expectations.

Founder/CEO Jensen Huang was especially bullish on the call, saying Blackwell sales are "off the charts and cloud GPUs are sold out." He emphasized that compute demand across both training and inference continues to accelerate exponentially, adding that we've entered a "virtuous cycle of AI." The ecosystem is expanding rapidly, with more foundation model developers, more AI startups, and broader global adoption.

Key Highlights

• Data Center revenue: A record $51.2 bln, up 25% qtr/qtr (vs +5% sequential growth in Q2) and 66% yr/yr, slightly above consensus.
  • Compute revenue +56% yr/yr on the GB300 ramp; networking revenue more than doubled.
  • Hyperscalers are shifting search, recommendation engines, and content understanding from classical ML to GenAI.
• Blackwell momentum: GB300 has overtaken GB200 and now represents roughly two-thirds of total Blackwell revenue. Transition to GB300 has been seamless, with production shipments to major cloud providers and hyperscalers.
• H20 sales: Minimal at ~$50 mln, as geopolitical issues and rising competition limited China-related purchase orders.
• Gaming & AI PC: Revenue of $4.3 bln, up 30% yr/yr and 1% qtr/qtr, driven by strong Blackwell demand; channel inventories remain healthy heading into the holidays.
• Other: Professional Visualization segment revenue grew 56% yr/yr to $760 mln while Automotive segment revenue grew 32% yr/yr to $592 mln, helped by NVIDIA's expanding self-driving offerings and a new partnership with Uber to scale the world's largest Level 4--ready autonomous fleet.

Briefing.com Analyst Insight

With AI infrastructure stocks recently correcting on valuation worries, NVIDIA's Q3 results and bullish Q4 guidance provide meaningful relief. Importantly, the outlook looks strong even with zero China compute revenue assumed, which underscores the depth of global demand for Blackwell and GB300.

CEO Jensen Huang's enthusiastic tone reinforces NVIDIA's long-term narrative: the AI buildout is still in the early innings, and demand continues compounding across virtually every vertical. That said, NVDA's premium valuation remains a point of debate, especially as investors consider sustainability beyond the current upgrade cycle.

Bottom line: NVIDIA's results and commentary reassert its leadership in the AI ecosystem, and the Q4 guide meaningfully eases concerns about spending deceleration. Long-term visibility remains exceptionally strong.