Introduction
Nvidia delivered extraordinary financial results for the third quarter of 2024, reporting revenue of $57 billion with 62% year-over-year growth compared to the same period last year. The company exceeded Wall Street expectations, with net income reaching $32 billion, up 65% annually. These figures mark a new expansion phase for the semiconductor giant, driven by insatiable demand for AI infrastructure and the remarkable success of Blackwell GPUs.
Data Center Performance
The data center business generated record revenue of $51.2 billion, representing over 89% of total revenue. This segment posted 25% growth from the previous quarter and 66% year-over-year expansion. CFO Colette Kress attributed these results to the acceleration of computing, increasingly powerful AI models, and agentic applications revolutionizing the industry.
During the Q3 earnings call, Kress revealed that the company announced AI factory and infrastructure projects totaling 5 million GPUs. Demand spans every market segment: cloud service providers, sovereigns, modern application builders, enterprises, and supercomputing centers.
The Blackwell Phenomenon
Blackwell Ultra GPUs, unveiled in March and available in several configurations, achieved exceptional sales performance. CEO Jensen Huang described Blackwell sales as "off the charts," emphasizing that cloud GPUs are completely sold out. Previous Blackwell versions also continue to see robust and sustained demand.
"Blackwell sales are off the charts, and cloud GPUs are sold out. Compute demand keeps accelerating and compounding across training and inference, each growing exponentially."
Jensen Huang, CEO / Nvidia
This success highlights how Nvidia isn't simply selling chips but an entire AI infrastructure stack that customers cannot replicate elsewhere.
Other Business Segments
Beyond data centers, the remaining $5.8 billion in revenue came primarily from gaming, which generated $4.2 billion, followed by professional visualization and automotive. This shows how Nvidia's business has completely transformed: gaming built the company, but AI now represents a market ten times larger.
China Market Challenges
A disappointing area concerns H20 GPU shipments, designed specifically for the Chinese market and generative AI applications. Kress explained that sizable purchase orders never materialized in the quarter due to geopolitical issues and an increasingly competitive market in China. US-imposed export controls are preventing Nvidia from selling advanced chips to China, causing billions in lost revenue. However, the company continues growing 62% despite these limitations.
The comment about a "competitive market in China" indicates that companies like Huawei and domestic Chinese chipmakers are capturing market share Nvidia can no longer address, accelerating Chinese semiconductor independence.
Fourth Quarter Forecast
Nvidia forecasts $65 billion revenue for the fourth quarter of 2024, pushing share price up more than 4% in after-hours trading. This represents 14% quarter-over-quarter growth, a significant increase confirming the company's momentum. The forecast suggests demand isn't just holding steady but continues to accelerate.
Addressing AI Bubble Concerns
During the earnings call, Jensen Huang directly addressed speculation about a potential AI bubble, stating that from the company's vantage point, the situation looks completely different. The numbers speak clearly: 62% revenue growth, 65% net income growth, sold-out inventory, and $65 billion Q4 forecast aren't characteristics of a speculative bubble but sustained demand outpacing supply.
Huang emphasized that compute demand keeps accelerating and compounding across both training and inference, with both segments growing exponentially. This means there are two simultaneous growth drivers, not just one, reinforcing the trend's sustainability.
Implications for the AI Industry
Nvidia's results carry significant implications for the entire AI ecosystem. Data center revenue of $51.2 billion, up 66% year-over-year, demonstrates that enterprise AI spending isn't slowing despite concerns about ROI and sustainability. The announcement of 5 million GPUs in a single quarter represents massive scale: more compute capacity than existed globally just a few years ago.
The fact that Blackwell GPUs are "off the charts" and cloud GPUs are sold out indicates supply still can't meet demand despite Nvidia's manufacturing ramp. Every major AI lab, cloud provider, and enterprise is buying as fast as Nvidia can ship.
Conclusion
Nvidia's third quarter 2024 results consolidate its position as the undisputed leader in AI infrastructure. With 62% revenue growth, sold-out Blackwell GPUs, and $65 billion Q4 forecast, the company demonstrates that AI computing demand is far from slowing. China market challenges represent an obstacle but don't compromise overall growth trajectory. The key question remains whether this demand is sustainable or pulling forward future purchases: so far, Nvidia is winning this bet.
FAQ
How much revenue did Nvidia report in Q3 2024?
Nvidia reported $57 billion in revenue for the third quarter of 2024, with 62% year-over-year growth compared to the same period last year.
What are Nvidia's Blackwell GPUs and why are they important?
Blackwell GPUs are next-generation AI chips unveiled in March 2024. They're important because they achieved record sales and are completely sold out, demonstrating strong demand for advanced AI infrastructure.
How much is Nvidia's data center business worth?
The data center segment generated $51.2 billion in Q3 2024, representing over 89% of Nvidia's total revenue and growing 66% year-over-year.
Why did Nvidia face challenges in China?
Nvidia experienced disappointing H20 GPU sales in China due to geopolitical restrictions and US-imposed export controls that prevent selling advanced chips to the country.
Does Nvidia confirm an AI bubble exists?
No, CEO Jensen Huang dismissed AI bubble concerns, citing sustained 62% growth, sold-out inventory, and $65 billion Q4 forecast as evidence of genuine demand.
How many GPUs did Nvidia announce in Q3 2024?
Nvidia announced AI factory and infrastructure projects totaling 5 million GPUs in the third quarter of 2024, representing unprecedented scale.
What is Nvidia's revenue forecast for Q4 2024?
Nvidia forecasts $65 billion in revenue for the fourth quarter of 2024, representing 14% quarter-over-quarter growth from Q3.
Source: OpenTools