Are NVIDIA Earnings The Make Or Break Of The Stock Market?
NVIDIA reported a sudden jump in quarterly revenue as demand for its AI hardware kept rising. The company said revenue for Q3 of fiscal 2026 reached $57.0 billion. This came up 22% from the Q2 and up 62% from a year earlier. The figures came from…
NVIDIA reported a sudden jump in quarterly revenue as demand for its AI hardware kept rising. The company said revenue for Q3 of fiscal 2026 reached $57.0 billion. This came up 22% from the Q2 and up 62% from a year earlier. The figures came from NVIDIA’s earnings release for the period ending on 26 October 2025.
The company said its data centre division delivered $51.2 billion, which came up 25% from the Q2 and up 66% from a year ago. This division has grown into the company’s biggest earner, driven largely by cloud companies and national AI projects. Jensen Huang, NVIDIA’s founder and chief executive, said demand for its Blackwell chips and cloud GPUs has grown fast across training and inference work.
NVIDIA reported GAAP gross margin of 73.4% and non GAAP gross margin of 73.6%. Both figures came up slightly from Q2. Net income for the quarter reached $31.9 billion. Diluted earnings per share reached $1.30 under both GAAP and non GAAP measures.
How Strong Was NVIDIA’s AI And Data Centre Activity This Quarter?
NVIDIA said the quarter brought a long list of AI partnerships and hardware launches. The company said it formed a partnership with OpenAI which will use at least 10 gigawatts of NVIDIA systems for its next round of infrastructure. It also said Anthropic will use NVIDIA systems for the first time, starting with 1 gigawatt of capacity built on its Grace Blackwell and Vera Rubin hardware.
The company said it is working with Google Cloud, Microsoft, Oracle and xAI to build new AI facilities in the United States. NVIDIA also said it is working with CoreWeave, Microsoft and Nscale to help build new AI setups in the United Kingdom. It added that it will invest £2 billion in the UK market.
NVIDIA celebrated the first Blackwell wafer produced at TSMC’s Arizona plant. It said this marks a new stage of manufacturing on US soil as Blackwell moves into full production. The company also launched Rubin CPX, a GPU designed for massive context processing, and NVQLink, an architecture that connects NVIDIA GPUs with quantum processors.
Also, Deutsche Telekom will use NVIDIA systems to run the first Industrial AI Cloud . In South Korea, NVIDIA said it is working with government groups and companies such as Hyundai Motor Group and Samsung Electronics to build AI infrastructure using more than a quarter million GPUs.
NVIDIA reported a sudden jump in quarterly revenue as demand for its AI hardware kept rising.
NVIDIA expects revenue of $65.0 billion for Q4 of fiscal 2026. It said gross margins should be near 75%. Operating expenses are expected to reach $6.7 billion under GAAP and $5.0 billion under non GAAP rules.
Kate Leaman, chief market analyst at AvaTrade, reacted to NVIDIA’s quarterly earnings, saying: “In an earnings season clouded by scepticism around tech valuations, NVIDIA’s Q3 2025 results seriously cut through the noise. With $57 billion in quarterly revenue and $31.9 billion in profit, NVIDIA didn’t just beat Wall Street expectations. It reminded investors why it sits at the very centre of the AI revolution.
“The star of the show was its data centre segment, which delivered $51 billion in sales, proof that cloud giants like Amazon, Google, and Microsoft are still pouring billions into AI infrastructure. Far from pulling back, they’re doubling down. This effectively put all chatter about AI bubbles to bed, at least for today. More from News “CEO Jensen Huang described demand for NVIDIA’s Blackwell chips as “off the charts,” and the numbers back that up, with over $500 billion in related orders already booked through 2026. Rather than a bubble, this is a market racing ahead of supply. “And in terms of forward guidance, Q4 revenue is guided at $65 billion. This indicates that the AI boom isn’t slowing – instead, it’s broadening. From generative AI Product Engineering Approaches For Building UX in Generative AI Tools and autonomous driving to virtualised computing, NVIDIA is touching every layer of future tech. Even physical constraints like land and power are starting to show up as the next bottlenecks, rather than demand.
“Investor confidence surged post-earnings, with NVIDIA shares climbing after hours and lifting much of the tech sector with it. Analysts widely agree: NVIDIA quelled doubts, renewed optimism, and gave fresh fuel to the AI-led rally powering through 2025.”
Is NVIDIA The Make Or Break Of The Stock Market?
We’ve asked experts exactly how much influence NVIDIA has on the overall stock market, and here’s what they’ve shared…
Davide Accomazzo, Instructor of Finance, Pepperdine Graziadio Business School
“NVIDIA earnings, and even more importantly, future guidance, are very important to the market given the size of the company and the role it plays in the AI evolution. However, a lot of skepticism is building up because of the circular financing that is occurring in the space, and top-line numbers may not cut it anymore.
“In fact, what may have gotten the market in reverse today after an ebullient start is NVIDIA’s rising accounts receivable. If the AI trend is so solid and expanding to every corner of the economy, why are receivables increasing? We may be seeing a replay of the 1990s when we built the internet infrastructure. There was a lot of excitement because the long-term thesis was manifest, but in the short term, the result was overcapacity and a crash.”
“NVIDIA is one of those companies in today’s market that is having a huge influence on the stock market – not only because of the AI hype cycle that is currently taking place but also because of their shear dominance in the technologies that are really doing the core work of today’s tech sector.
“NVIDIA’s dominance could be short lived as smaller AI models take hold and CPU based solutions start taking the lead over GPU lead solutions in AI. LLM’s will give way to smaller more specialized language models and thus a whole new market will be born and lead probably more so by groups like AMD and Intel or up and coming companies like Symbolic Mind.”
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Based on reporting by techround.co.uk.