Nvidia beats earnings expectations, even as bubble concerns mount

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Nvidia CEO Jensen Huang delivers the keynote address during the Nvidia GTC 2025 at SAP Center on March 18, 2025 in San Jose, California. – Justin Sullivan/Getty Images

Nvidia posted strong revenue and profits that exceeded Wall Street’s expectations Wednesday. The closely watched result could prompt a sigh of relief across the stock market following growing concerns about an artificial intelligence bubble.

Nvidia’s sales grew 62% year-over-year to $57 billion in the October quarter, ahead of the $54.9 billion Wall Street had projected, signaling that demand for AI chips remains strong even as more questions emerge about whether returns from the technology will keep up with the pace of infrastructure investments. It posted profits of $31.9 billion, up 65% from the year-ago quarter and also slightly above expectations.

“Blackwell sales are off the charts, and cloud GPUs are sold out,” Nvidia CEO Jensen Huang said in a statement, a message that echoes his earlier arguments that fears of an AI bubble are overblown.

The company also posted stronger-than-expected sales guidance of around $65 billion for the fourth quarter, another indicator that the AI spending spree isn’t slowing anytime soon.

Nvidia’s stock (NVDA) jumped 3.4% in after-hours trading immediately following the report.

Nvidia has become both the backbone and an emblem of the AI boom, with much of the industry’s technology running on its chips. The world’s most valuable public company has also been central to this year’s stock market rally — it accounts for roughly 8% of the S&P 500 and its deals with other tech firms have helped fuel their stocks, too — meaning that nearly all investors and 401k holders stand to be impacted by Wednesday’s results.

Fears of an AI bubble ahead of Nvidia’s report had caused volatility across the stock market as investors adopted a risk-off attitude and dumped assets like bitcoin and AI stocks.

Shares of other tech stocks — including Meta, Microsoft,…

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