Nvidia Posts Record $57 Billion Quarter and Dismisses AI Bubble Talk

Nvidia reported record revenue of $57 billion for its fiscal third quarter on Wednesday, up 22 percent from the previous quarter and 62 percent from a year earlier, CBS News reported. The results beat Wall Street forecasts. Analysts surveyed by FactSet had expected earnings of $1.26 a share on $54.9 billion in revenue, according to CBS News; Nvidia reported $1.30 a share. CNBC reported that the company also gave a strong forecast, expecting about $65 billion in sales in the current quarter, which ends in late January.

The report landed after weeks of investor worry that spending on artificial intelligence had run ahead of the returns. CBS News said analysts note most companies putting AI to work have not yet seen a measurable rise in productivity or profits. On the earnings call, chief executive Jensen Huang pushed back. “There’s been a lot of talk about an AI bubble,” he said, according to CNBC. “From our vantage point, we see something very different.” CNBC reported that Huang pointed to three growing uses of the technology: ordinary software such as data processing moving onto Nvidia’s chips, AI that creates new kinds of applications, and autonomous “agentic” AI that will need more computing power.

Analysts largely welcomed the numbers. Dan Ives of Wedbush Securities called it “a huge print and guidance from Nvidia” and said “fears of an AI Bubble are way overstated,” CBS News reported. CNBC reported that Bernstein analysts said Huang’s comments helped ease fears after the recent pullback in AI stocks, writing that “perhaps the AI trade is not yet dead after all,” and that Jefferies said Nvidia “answered the bell” and should steady the AI trade through year-end. CBS News said Nvidia shares rose nearly 4 percent in after-hours trading.

Nvidia’s weight in the economy and the market is large. CBS News reported that in October the company became the first publicly listed firm worth $5 trillion, and that data center investment has become the largest contributor to U.S. growth this year, according to S&P Global. The same report said the so-called Magnificent 7 technology stocks make up 37 percent of the S&P 500’s value, according to Morningstar, so the health of the AI trade matters to many retirement accounts.

CNBC reported that in October Huang said Nvidia had orders for $500 billion of AI chips across 2025 and 2026, and that on Wednesday the company said the forecast remained on track. Chief financial officer Colette Kress said, “The number will grow,” according to CNBC. That backlog does not include recent deals, CNBC said.

China remains the gap. Both CBS News and CNBC reported that U.S. export restrictions keep Nvidia’s most advanced chips out of the Chinese market, and Kress said the company is “disappointed” by the current limits. CNBC reported that sales of the slowed-down H20 chip were insignificant at $50 million in the quarter, and that Nvidia wants approval to sell a version of its current-generation Blackwell chip there.