Iverson led the way with 37 points and eight assists, while Smith added 29 points and Anthony had 22 along with nine rebounds. Marcus Camby pulled in 12 rebounds.
Denver went on a 14-4 run in the second quarter that led to a 58-43 halftime lead and pushed its lead to as much as 27 in the third quarter. The Nuggets wound up shooting 55 percent from the field, including 12 of 22 from three-point range.
"We played with a sense of urgency," Iverson said. "I was in a good rhythm tonight. The basket was like an ocean."
Cleveland shot 41.9 percent from the field and missed 17 of 38 free throws.
"Denver did what they wanted on both ends of the floor," Cleveland Coach Mike Brown said.