Nvidia has reported stronger-than-expected quarterly results, easing investor concerns about escalating artificial intelligence spending that has unsettled global markets. Revenue for the three months to October rose 62 percent to fifty seven billion dollars, powered by continued demand for the company’s AI data centre chips. Sales from that division climbed to more than fifty one billion dollars, an increase of 66 percent year on year.
The chipmaker also issued a robust fourth quarter revenue forecast of sixty five billion dollars, surpassing analyst expectations and lifting its share price by about four percent in after-hours trading. The results once again affirmed Nvidia’s position as the world’s most valuable company and a leading indicator of momentum in the AI sector.
Chief executive Jensen Huang dismissed concerns of an AI bubble, saying demand for the company’s Blackwell systems is exceeding supply and cloud GPUs remain sold out. He said Nvidia continues to excel at every phase of AI development and deployment.
The upbeat results came at a time when markets have been under pressure from fears that AI-related stocks are overvalued. The S&P 500 index has dropped nearly three percent over the course of November, dragged down in part by questions about whether the rapid increase in AI investment can produce long-term returns. Analysts have likened the current environment to the dotcom boom of the late 1990s, when optimism around early internet companies led to soaring valuations before the market collapsed in 2000.
Expectations for Nvidia were especially high heading into the announcement. Adam Turnquist of LPL Financial noted that the question was not whether Nvidia would beat its targets but by how much. Matt Britzman of Hargreaves Lansdown added that while certain parts of the AI sector may need to cool, Nvidia continues to demonstrate disciplined execution.
Investors were also seeking clarity on the company’s previously projected five hundred billion dollars in AI chip orders through next year. Chief financial officer Colette Kress said Nvidia expects to take on additional orders beyond that figure. She also expressed disappointment about US export controls that limit the company’s ability to sell chips to China, remarking that American industry must win the support of every developer, including those in China. She said the firm remains committed to engagement with both governments.
Nvidia’s global influence was also on display earlier in the day at the US-Saudi Investment Forum, where Jensen Huang joined Elon Musk to unveil plans for a major data centre complex in Saudi Arabia. The facility will rely on hundreds of thousands of Nvidia chips and will serve Musk’s AI firm, xAI, as its first customer. Reports indicate that the US Commerce Department has approved the sale of as many as seventy thousand advanced chips to state-backed entities in Saudi Arabia and the United Arab Emirates, following discussions between President Donald Trump and Crown Prince Mohammed bin Salman.
The sector-wide race to invest in AI infrastructure continues to accelerate. Recent earnings from Meta, Alphabet and Microsoft highlighted multibillion-dollar commitments to data centres and semiconductor capacity. Although Google chief Sundar Pichai described the current investment surge as extraordinary, he also cautioned that parts of the market may be showing signs of irrationality.
Industry voices have raised concerns reminiscent of the dotcom era. Simon French of Panmure Liberum said the risk lies less with established firms like Nvidia and more with smaller, unprofitable companies in the wider tech ecosystem. Meanwhile, scrutiny is increasing over a network of circular investment deals among AI leaders such as OpenAI, Anthropic and xAI. These include Nvidia’s one hundred billion dollar investment in OpenAI. Investor Eileen Burbidge noted that such arrangements raise questions about whether a small cluster of firms is recycling capital in ways that inflate valuations.
Despite these concerns, Nvidia’s latest performance underscores its centrality to the AI economy and its ability to navigate both market enthusiasm and regulatory headwinds.
