Nvidia delivered another outstanding quarter. Q3 revenue of $57 billion and a Q4 guide of $65 billion are comfortably ahead of buyside expectations, and management’s tone was confident. CEO Jensen Huang described Blackwell demand as ‘off the charts,’ and the Q4 outlook directly addresses recent concerns that AI capex might be peaking.
Compute was the standout, up 66% year-on-year, while networking grew solidly despite some shipment-timing effects. The transition from GB200 to GB300 has been seamless, and Rubin remains on track for the second half of 2026 with a major performance uplift.
Gross margin recovered to 73.6% in Q3, and the Q4 guide of roughly 75% reinforces confidence that Nvidia can sustain high margins even as production ramps rapidly. This supports the view that the value proposition of its full-stack AI platform remains strong and that mid-70s margins are sustainable.
The call offered clearer visibility on the Blackwell cycle. Nvidia now expects around $0.5 trillion of Blackwell revenue from now through 2026, with cloud hyperscaler capacity sold out and utilisation running at full levels. In Q&A, the CFO noted that this figure could rise as additional agreements, including the recent deal with Anthropic, have been signed since late October.
Rubin progress was reiterated: the next-generation Rubin platform remains on schedule for H2 2026, followed by Rubin Ultra in 2027, both central to extending Nvidia’s multiyear technology lead.
Huang added that he is not seeing any AI bubble, highlighting three structural shifts: the move from CPU to accelerated computing; the tipping point for generative AI, and the rise of agentic AI; all of which require more infrastructure.
Overall, this was a very strong set of results with confident guidance and a constructive medium-term outlook. Notably, Nvidia shares have actually been de-rating in recent months as earnings continue to rise faster than the stock price. With Q4 guidance now out, investors will naturally shift focus to 2026–27, and on 2027 consensus estimates Nvidia trades at roughly 21x earnings.
By Jakub Dubaniewicz, senior equity analyst at Syz Bank
