Nvidia recently delivered a strong performance in its third-quarter earnings report, surpassing Wall Street's expectations and helping to calm growing concerns about a potential AI market bubble. The company announced record-breaking revenue of $57 billion, a significant 62% increase from the previous year, and earnings per share of $1.30, both higher than anticipated. Looking ahead, Nvidia also projected robust sales of approximately $65 billion for the upcoming three months. CEO Jensen Huang highlighted the extraordinary demand for their Blackwell chips, stating it is "off the charts," and noted that cloud GPUs are currently "sold out." This positive news caused Nvidia's shares to jump 4% to 5% in after-hours trading and also provided a boost to competitors like Broadcom and Advanced Micro Devices (AMD), as well as other chipmakers such as Marvell Technology and Micron Technology. Leading up to the earnings release, the AI market faced considerable apprehension. Nvidia's stock had seen a decline of over 10% in November, fueled by worries over AI valuations and increased competition. Major investors, including Peter Thiel's fund and SoftBank, had reportedly sold off their shares. Analysts had initially expected revenue around $54.8 billion to $54.9 billion and earnings per share of $1.25 to $1.26. Despite these concerns, experts like Morgan Stanley's Joseph Moore had raised estimates, calling Blackwell the "AI chip of choice," and JPMorgan's Harlan Sur suggested that AI data center spending is just beginning. In the broader market, investors were also grappling with a general tech stock and cryptocurrency selloff, with the Dow Jones, S&P 500, and Nasdaq Composite experiencing declines. Companies like Amazon and Microsoft also saw losses, and Federal Reserve Governor Christopher Waller hinted at a potential interest rate cut in December. While some experts, like Wolfe Research strategists, believe current AI bubble fears are unfounded, they advise caution before aggressively buying more AI stocks. Meanwhile, the AI infrastructure sector continues to see significant investment. Lambda announced on November 18, 2025, that it secured over $1.5 billion in Series E funding to build Gigawatt-Class AI Infrastructure, crucial for training and deploying AI models. Investor Tom Russo, however, expressed greater concern over the rising US national debt, which exceeds $38 trillion, and its potential to cause a "financial disruption" larger than any AI stock crash. He praised Berkshire Hathaway's investment in Alphabet (Google), calling it a "remarkably solid and strong business." Experts continue to advise investors to consider Nvidia's high valuation and competition from companies like AMD and Intel, stressing the importance of diversified investments.
Key Takeaways
- Nvidia reported record-breaking Q3 revenue of $57 billion and earnings per share of $1.30, exceeding analyst expectations.
- Nvidia projects strong Q4 sales of approximately $65 billion, indicating continued high demand.
- CEO Jensen Huang stated demand for Blackwell chips is "off the charts" and cloud GPUs are "sold out."
- Nvidia's strong earnings caused its shares to jump 4-5% after hours and boosted other chipmakers like Broadcom and Advanced Micro Devices (AMD).
- Prior to earnings, Nvidia's stock was down over 10% in November due to AI valuation concerns and competition, with investors like Peter Thiel's fund and SoftBank selling shares.
- Lambda secured over $1.5 billion in Series E funding on November 18, 2025, to develop Gigawatt-Class AI Infrastructure.
- Investor Tom Russo views the rising US national debt (over $38 trillion) as a greater threat than an AI stock crash, while praising Berkshire Hathaway's investment in Alphabet (Google).
- Wolfe Research strategists advise caution on aggressive AI stock buying despite current bubble fears being unfounded.
- Concerns remain about Nvidia's high valuation and competition from companies like AMD and Intel.
- Federal Reserve Governor Christopher Waller hinted at a potential interest rate cut in December, impacting the broader market.
Nvidia Q3 Earnings Crucial for AI Market
Nvidia reported its third quarter earnings on Wednesday, a key moment for the AI trade. Analysts expected $54.8 billion in revenue and $1.25 earnings per share. The report could cause a $300-320 billion change in Nvidia's market value, the largest ever after earnings. Some investors, like Peter Thiel's fund and SoftBank, sold their shares due to worries about an AI bubble. However, Morgan Stanley analyst Joseph Moore raised his estimates, calling Blackwell the "AI chip of choice." Most analysts remain positive about Nvidia's future.
Wall Street Awaits Nvidia Q3 Results
Nvidia released its third quarter results on Wednesday, which are very important for the AI market. The company, which makes up 8% of the S&P 500, was expected to show strong data center sales. Nvidia's stock is down over 10% in November due to worries about AI valuations and competition, but it is still up 36% this year. Analysts expected $1.25 earnings per share on $54.9 billion in sales. JPMorgan analyst Harlan Sur believes AI data center spending is just starting.
Nvidia Beats Forecasts Again Calming AI Bubble Fears
Nvidia announced record-breaking third quarter results on Wednesday, easing worries about an AI bubble. The company reported $57 billion in revenue, a 62% increase from last year, and earnings per share of $1.30, both higher than expected. Nvidia also predicted strong sales of about $65 billion for the next three months. CEO Jensen Huang stated demand for Blackwell chips is "off the charts" and cloud GPUs are "sold out." These strong results caused Nvidia's shares to rise 4% after hours and also boosted competitors like Broadcom and Advanced Micro Devices.
Nvidia Stock Jumps After Beating Forecasts
Nvidia's stock rose after the company announced better-than-expected third quarter results. Nvidia earned $1.30 per share on $57 billion in sales, surpassing Wall Street's predictions. The company also projected strong revenue of $65 billion for the fourth quarter. CEO Jensen Huang said demand for their chips is "off the charts" and they have over $500 billion in sales planned. This strong report helped calm fears about an AI bubble, causing Nvidia shares to jump 5% in after-hours trading.
Investors Watch Nvidia Earnings Amid AI Stock Worries
Investors are concerned about whether AI stocks are too expensive, as tech stocks and cryptocurrency values recently dropped. The Dow Jones, S&P 500, and Nasdaq Composite all saw declines, and Bitcoin traded near six-month lows. Many are looking to Nvidia's third quarter earnings report on Wednesday as a key indicator for the AI sector. Nvidia's stock was down about 2% on Tuesday, with Amazon and Microsoft also seeing losses. Federal Reserve Governor Christopher Waller also hinted at another interest rate cut in December.
Lambda Secures 1.5 Billion Dollars for AI Infrastructure
Lambda announced on November 18, 2025, that it raised over $1.5 billion in Series E funding. This money will help the company build Gigawatt-Class AI Infrastructure. Lambda creates large AI factories that are crucial for training and using AI, especially as the need for computing power grows and data center space is limited. Thomas Tull from TWG Global and USIT praised Lambda's vision, stating that creating enough AI compute power is a major challenge today. Gaetano Crupi from USIT added that Lambda is key to turning energy into AI processing efficiently.
Investor Russo Sees US Debt as Bigger Threat Than AI Crash
Investor Tom Russo believes Warren Buffett's company, Berkshire Hathaway, made a smart move by investing $4.3 billion in Alphabet. Alphabet's stock has risen significantly, and Russo calls it a "remarkably solid and strong business" that invests for the long term. However, Russo is more worried about the rising US national debt, which is now over $38 trillion, and the potential for the dollar to weaken. He thinks these issues could cause a "financial disruption" much larger than any AI stock crash.
Experts Advise Caution Before Buying More AI Stocks
Wolfe Research strategists suggest that worries about an AI bubble are currently unfounded, and the sector is strong even if the economy slows. However, they advise investors to wait for clearer signals before buying more AI stocks aggressively. They are watching for strong earnings or a significant market correction. Federal Reserve Governor Christopher Waller also indicated support for another interest rate cut in December due to labor market concerns. All eyes are on Nvidia's earnings report today, which could be a major factor for the entire AI market.
Expert Cautions Investors About Nvidia Stock
Nvidia's stock has grown over 200% in the past year, attracting many investors. However, an expert warns potential buyers to consider several risks before investing. Concerns include Nvidia's high valuation, strong competition from companies like AMD and Intel, and general market volatility. The expert also stressed the importance of diversifying investments instead of putting too much money into a single stock. Investors should research Nvidia's finances and how it fits into their overall investment plan.
Nvidia Reports Earnings Amid AI Market Concerns
Nvidia is preparing to release its earnings report during a market selloff and growing fears of an AI crash. Analysts expect Nvidia to surpass Wall Street's predictions, but they are keenly awaiting CEO Jensen Huang's outlook on future demand for AI chips. Nvidia's shares have dropped 7.9% in November, partly because major investors like Peter Thiel's hedge fund and SoftBank sold their holdings. The company is expected to report $1.26 earnings per share on $54.9 billion in revenue for the quarter.
Nvidia Earnings Boost Stocks and AI Trade
Stock futures rose after Nvidia released its quarterly results on Wednesday night, which surpassed Wall Street's expectations. The chipmaker also provided an optimistic forecast, causing its shares to jump nearly 5% in extended trading. This positive news helped revive investor confidence in the AI market, which had been weakened by fears of high valuations and debt. Other chipmakers like Broadcom, Advanced Micro Devices, Marvell Technology, and Micron Technology also saw their shares rise.
Sources
- Nvidia (NVDA) Stock: Wednesday's Earnings Could Make or Break the AI Trade
- Nvidia reports third-quarter results after the bell. Here's what Wall Street expects
- Nvidia beats expectations again in defiance of AI bubble fears
- What AI bubble? Nvidia stock rises as it beats Wall Street forecast
- Are AI stocks overvalued?
- Lambda Raises Over $1.5B Series E to Scale Gigawatt-Class AI Infrastructure
- Tom Russo hails Warren Buffett's Alphabet wager, sees bigger risk than AI crash
- Watch these indicators before aggressive buying AI stocks By Investing.com
- Before you buy Nvidia, here’s what one expert wants you to know
- Nvidia to report earnings amid market selloff and rising fears of AI crash
- Stock futures higher after Nvidia earnings, S&P 500 snaps losing streak: Live updates
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