Nvidia Declares the Dawn of an “AI Virtuous Cycle” as It Delivers Record-Shattering Q3 Earnings

Nvidia has once again defied skeptics of an AI bubble. The company’s third-quarter earnings, released on November 19 local time, showed that the boom in AI infrastructure remains far from peaking. Data center revenue accounted for 90 percent of the company’s total sales, signaling that Nvidia is no longer simply a GPU maker. It is now at the center of a global race to build AI computing power.

The New Architecture of the AI Era

The results, announced early Thursday Korea time, revealed a fundamental shift. Nvidia reported quarterly revenue of 57.01 billion dollars, up 62 percent from a year earlier and well above market expectations.

The real story, however, lies in the company’s revenue structure. Data center sales surged to 51.2 billion dollars, growing 66 percent year over year. This reflects unrelenting demand for Nvidia’s H and B series GPUs, now the critical engines behind generative AI training and enterprise-level cloud expansion.

For governments, corporations and startups alike, data centers have become the core of industrial competitiveness. Nvidia’s results show that the global economy has entered a period in which AI computing capacity is the new strategic resource.

Jensen Huang: “All Cloud GPUs Are Sold Out. The AI Flywheel Is Turning.”

Shortly after the earnings release, CEO Jensen Huang declared that Nvidia has entered an AI virtuous cycle. He stated that cloud GPUs had sold out completely and that AI ecosystems were expanding faster than anticipated.

Huang described a loop now accelerating on its own: the rise of large-scale AI models increases demand for GPUs, which drives more data center construction, enabling more advanced AI services, which then raises computing demand yet again. Nvidia’s performance suggests this loop is fully in motion.

The comments also undercut recent claims that AI markets are overheating. According to Nvidia’s numbers, demand remains grounded in real adoption and real infrastructure buildup.

A Global Race to Build the World’s AI Factories

Another key takeaway is that investment in AI data centers is no longer confined to a handful of big tech companies.

Major cloud providers are rapidly expanding next-generation AI facilities.

Governments are launching national AI computing centers as part of industrial strategy.

Startups and mid-size companies are increasing their reliance on cloud GPUs for inference workloads.

The result is broad-based demand for Nvidia’s chips and a widening recognition that AI computing capacity will determine industrial strength for the next decade.

Market Reaction Is Secondary. The Core Story Is Structural Growth.

Nvidia shares jumped more than 5 percent in after-hours trading, but analysts stressed that the stock movement is not the most important point.

The consensus among global research firms is that the AI infrastructure cycle is still in its early phase. Analysts expect continued growth driven by expanding data center capacity, larger-scale AI models, competition to reduce inference costs and rising demand for edge AI and power infrastructure.

The true takeaway, they argue, is that structural growth in AI infrastructure has once again been validated.

A Confident Outlook for Q4: “This Is Only the Beginning”

Nvidia projected fourth-quarter revenue of 65 billion dollars and EPS of 1.43 dollars, signaling that momentum will continue into the year’s end. The outlook reflects ongoing strength in data center demand and sustained investment across the broader AI ecosystem.

Nvidia’s Q3 report sends a clear message to global tech markets. The scale of the AI infrastructure race is still expanding rapidly. The data center-centric era of AI computing is only entering its second act, and Nvidia remains at the center of it.

The AI infrastructure war has only just begun.

Ju-Baek Shinㅣjbshin@kmjournal.net