[News] NVIDIA Q3 Data Center Revenue Hits Record, as Jensen Huang Denies Blackwell Overheating Rumors

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Now the world’s largest company by market capital, NVIDIA has posted a robust third-quarter earnings report, with its data center revenue hitting record high. According to a report from Reuters, NVIDIA CEO Jensen Huang reassured the market by refuting the Blackwell overheating rumors, stating “there are no issues with our Grace Blackwell liquid-cooled systems,” with successful customer implementation such as Microsoft.

In the company’s press release, Huang added that “demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training, and inference.”

The AI giant also noted that demand for Blackwell is anticipated to outpace supply for several quarters into fiscal 2026, according to a report by CNBC.

Another Record Quarter, But Continued Slowdown for Growth Rate

Just as Huang’s statement that the age of AI is in full steam, NVIDIA reported revenue for the third quarter ended October 27, 2024, of $35.1 billion, up 17% from the previous quarter and up 94% from a year ago, hitting a new high.

The company’s Non-GAAP earnings per diluted share was $0.81, up 19% from the previous quarter and up 103% from a year ago, according to its press release.

It is worth noting that its data center revenue in the third quarter was a record $30.8 billion, up 17% from the previous quarter and up 112% from a year ago.

On the other hand, NVIDIA’s gaming revenue reached $3.3 billion, an increase from the $2.8 billion generated by the division last year.

For the fourth quarter, NVIDIA provides an optimistic forecast with a quarterly revenue of $37.5 billion, plus or minus 2%, which is slightly above Wall Street’s expectation of $37 billion, the CNBC report notes.

However, there is still a cause for concern. The CNBC report pointed out that though NVIDIA’s revenue soared 94% year-over-year in the third quarter, this marks a continued slowdown from the previous three quarters, which saw growth rates of 122%, 262%, and 265%, respectively.

According to another Reuters report, NVIDIA’s fourth-quarter forecast suggests a slowdown in revenue growth, as its year-over-year growth rate is expected to drop to around 69.5%.

No Issues with Blackwell Liquid-cooled Systems

One of the most important messages in the earnings call may be Jensen Huang’s remarks on Blackwell concerns. The latest rumor indicates that the flagship liquid-cooled server containing 72 of the new Blackwell chips was experiencing overheating issues during initial testing.

According to Reuters, Huang assured there were no problems. He confirmed that customers such as Microsoft, Oracle, and CoreWeave are successfully implementing the systems.

“There are no issues with our Grace Blackwell liquid-cooled systems,” Huang told Reuters. “The engineering is not easy at all, because what we’re doing is hard, but we’re in good shape.”

According to Reuters, citing NVIDIA CFO Colette Kress, Blackwell has been well-received by NVIDIA’s customers, and the company is expected to surpass its initial sales projections of several billion dollars for the processors in the fourth quarter.

Kress stated that 13,000 samples of the chip have been sent to customers, adding that both Hopper and Blackwell systems face supply constraints, and demand for Blackwell is anticipated to outstrip supply for several quarters in fiscal 2026, the CNBC report notes,

Kress also suggested that the Blackwell chips are expected to initially have gross margins in the low 70% range, which will improve to the mid-70% range as production increases, according to Reuters.

Read more

• [News] NVIDIA’s Blackwell GPUs Reportedly Overheat in Server Racks, Sparking Delay Concerns
• [News] Dell, Foxconn, and Quanta Reassure NVIDIA’s GB200 Shipments on Track Amid Overheat Rumors

(Photo credit: NVIDIA)