On November 19, AI powerhouse Nvidia posted its earnings for the third-quarter1 of fiscal 2026. As in previous quarters, the company produced a “beat and raise,” with revenue, earnings, and guidance all above estimates. On the earnings call2, management provided investors with more details in relation to the strength of the artificial intelligence (AI) market and Nvidia’s dominant position within it. Here are three key takeaways from the call.
Demand for Nvidia GPUs is Sky-High
One thing that became very clear early on in the earnings call was that demand for Nvidia’s GPUs is sky-high right now. “The clouds are sold out, and our GPU installed base, both new and previous generations, including Blackwell, Hopper, and Ampere, is fully utilized,” said CFO Colette Kress.
Looking ahead, Kress said that the company has visibility to a half a trillion dollars in Blackwell and Rubin revenue from the start of this year through the end of calendar year 2026. However, she added that there’s the possibility of upside to this number.
It’s worth noting that H20 sales from China in Q3 were just $50 million. "Sizable purchase orders never materialized in the quarter due to geopolitical issues and the increasingly competitive market in China," said Kress in relation to China.
This means that there’s potentially a whole new source of growth to come onboard at some stage. If export restrictions are lifted, the company could potentially be looking at several billion dollars in additional revenue per quarter.
This is Just the Beginning
While AI has transformed industries in recent years, Nvidia CEO Jensen Huang believes that this is just the beginning. Huang’s view is that the world is set to go through three major platform shifts and that these will lead to further growth for the company.
The first shift is from general-purpose CPU computing to GPU-based accelerated computing. This is happening as Moore’s Law slows, and it becomes harder to achieve significant performance by increasing transistor density.
The second is a shift away from non-AI software to AI-powered software that is running on GPUs. Here, Huang gave the example of Palantir, which is now powering its ontology platform with Nvidia CUDA X libraries and AI models after previously running on CPUs.
The third is a shift to agentic AI systems that are capable of reasoning, planning, and using tools. These systems, which mark the next frontier of computing, require accelerated computing systems.
In terms of customer dynamics in the future, Nvidia said that it sees the transition to accelerated computing and generative AI across current hyperscale workloads contributing roughly half of its long-term opportunity. Another growth pillar will be compute spend from foundation model builders such as Anthropic, OpenAI, Reflection, Thinking Machines Lab, and xAI.
Jensen Sees No AI Bubble
Many investors are concerned that there is a bubble in the AI space at present. However, Huang doesn’t see it. “There's been a lot of talk about an AI bubble. From our vantage point, we see something very different,” he said on the earnings call.
Huang went on to say that when hyperscalers invest in Nvidia GPUs, it improves their scale, speed, and cost. He added that with Moore’s Law slowing, a new approach is necessary for tech companies to drive costs down and that Nvidia GPUs are an effective way to do this. Huang also pointed out that Nvidia GPUs can help these businesses boost their revenues. Here, he explained that many of the Big Tech firms’ business models are based on “recommender systems” that are powered by generative AI and that AI is leading to net new consumption.
As an example, he highlighted Meta. At Meta, AI recommendation systems are delivering more relevant content, leading to more time spent on Facebook and Instagram. Huang noted that in Q2, Meta reported over a 5% increase in ad conversions on Instagram and 3% gain on its Facebook feed. So, the investment in GPU technology is clearly working.
Powering the AI Revolution
Putting this all together, Nvidia's Q3 earnings painted a picture of a company not just riding the AI wave but actively shaping its future. With demand for its GPUs consistently outstripping supply, a clear path to overcoming potential "bubble" concerns through tangible ROI for its customers, and a vision for three monumental platform shifts, the company appears uniquely positioned to capitalize on the AI boom in the years ahead.
Footnotes:
1NVIDIA Newsroom, NVIDIA Announces Financial Results for Third Quarter Fiscal 2026, as of November 19, 2025
2Yahoo Finance, NVIDIA Corporation (NVDA) Q3 FY2026 earnings call transcript, as of November 19, 2025
