Nvidia reported Q3 revenue of $57 billion, up 22% sequentially and 62% year over year, beating guidance. Forecast for Q4 of $65 billion is above estimates. Data center revenue was $51.2 billion, up 66% YOY. Nvidia expects $500 billion in Blackwell and Rubin product revenue by 2026. Shares rose 6% after hours.

Nvidia’s excellent revenue growth is driven by high demand for AI products. The company’s supply chain expansion is allowing for revenue acceleration. Data center revenue is up significantly, with commitments increasing by 63% YOY. Nvidia still sees $3-$4 trillion in annual AI infrastructure spending by 2030. Fair value estimate raised to $240.

Nvidia anticipates strong revenue growth and healthy gross margins in the 75% range for the January quarter. The company is prepared to pass on higher input costs to customers due to its strong pricing power. Longer-term concerns exist, but 2026 is expected to be a stellar year for AI. Opportunity for investors amidst recent AI bubble chatter.

Read more at Morningstar: Nvidia Earnings: No Signs of a Near-Term AI Bubble; Raising Fair Value