Nvidia posts explosive quarterly growth as CEO Jensen Huang dismisses talk of an AI bubble
Nvidia has reassured investors once again, delivering results that outpaced even the most optimistic forecasts.
- Nov 21, 2025,
- Updated Nov 21, 2025 8:48 AM IST
Nvidia delivered another blockbuster quarter on Wednesday, easing investor worries after months of speculation that the AI boom may be overheating. The chipmaker’s third-quarter earnings beat expectations by a wide margin, and its outlook for the coming quarter offered fresh momentum to global markets that have increasingly looked to Nvidia for signs of stability in the AI economy.
CEO Jensen Huang was quick to push back against the idea that the industry is in bubble territory. “There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” he said on a call with analysts, highlighting unprecedented demand from cloud companies eager to secure Nvidia’s chips. “We’re in every cloud. The reason why developers love us is because we’re literally everywhere. We’re everywhere from cloud to on-premise to robotic systems, edge devices, PCs, you name it. One architecture. Things just work. It’s incredible.”
Huang reiterated a recent forecast that Nvidia has secured $500 billion in chip bookings through 2026.
Shares jumped 5 percent in extended trading, setting up the company to add roughly $220 billion in market value. Before the earnings release, concerns about overstretched AI valuations had pushed Nvidia’s shares down nearly 8 percent in November, despite a three-year rally of more than 1,200 percent.
The boost from Nvidia helped lift futures across the board, with S&P 500 contracts rising about 1 percent as traders anticipated a stronger market open on Thursday.
For the fiscal fourth quarter, Nvidia expects revenue of around $65 billion, plus or minus 2 percent, well above analyst estimates of $61.66 billion. The company also projected an adjusted gross margin of 75 percent for the period. Finance chief Colette Kress said Nvidia aims to keep margins in the mid-70 percent range through fiscal 2027.
Third-quarter revenue rose 62 percent, marking the first acceleration in seven quarters. Data-centre sales climbed to $51.2 billion, beating expectations of $48.62 billion, and lifting shares of rivals such as AMD along with tech heavyweights including Alphabet and Microsoft.
Still, the results did not completely silence concerns about overheating in the AI sector.
Nvidia sharply increased its spending in the quarter on renting back its own chips from cloud partners who otherwise cannot lease them out, with these contracts rising to $26 billion, more than double the previous quarter.
Cloud giants like Microsoft and Amazon continue to pour billions into AI data-centre expansion, but some investors question whether the current pace of spending is artificially inflated. Nvidia’s revenue concentration is also rising, with four customers now accounting for 61 percent of sales, up from 56 percent in the prior quarter. The company has meanwhile invested billions in AI start-ups, including a decision in September to invest up to $100 billion in OpenAI.
U.S. export restrictions have largely blocked Nvidia from selling high-end chips in China, forcing the company to look elsewhere for growth. On Wednesday, the Commerce Department authorised the export of the equivalent of up to 35,000 Nvidia Blackwell chips to two companies in Saudi Arabia and the UAE, a shipment valued at well above $1 billion by market estimates.
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Nvidia delivered another blockbuster quarter on Wednesday, easing investor worries after months of speculation that the AI boom may be overheating. The chipmaker’s third-quarter earnings beat expectations by a wide margin, and its outlook for the coming quarter offered fresh momentum to global markets that have increasingly looked to Nvidia for signs of stability in the AI economy.
CEO Jensen Huang was quick to push back against the idea that the industry is in bubble territory. “There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” he said on a call with analysts, highlighting unprecedented demand from cloud companies eager to secure Nvidia’s chips. “We’re in every cloud. The reason why developers love us is because we’re literally everywhere. We’re everywhere from cloud to on-premise to robotic systems, edge devices, PCs, you name it. One architecture. Things just work. It’s incredible.”
Huang reiterated a recent forecast that Nvidia has secured $500 billion in chip bookings through 2026.
Shares jumped 5 percent in extended trading, setting up the company to add roughly $220 billion in market value. Before the earnings release, concerns about overstretched AI valuations had pushed Nvidia’s shares down nearly 8 percent in November, despite a three-year rally of more than 1,200 percent.
The boost from Nvidia helped lift futures across the board, with S&P 500 contracts rising about 1 percent as traders anticipated a stronger market open on Thursday.
For the fiscal fourth quarter, Nvidia expects revenue of around $65 billion, plus or minus 2 percent, well above analyst estimates of $61.66 billion. The company also projected an adjusted gross margin of 75 percent for the period. Finance chief Colette Kress said Nvidia aims to keep margins in the mid-70 percent range through fiscal 2027.
Third-quarter revenue rose 62 percent, marking the first acceleration in seven quarters. Data-centre sales climbed to $51.2 billion, beating expectations of $48.62 billion, and lifting shares of rivals such as AMD along with tech heavyweights including Alphabet and Microsoft.
Still, the results did not completely silence concerns about overheating in the AI sector.
Nvidia sharply increased its spending in the quarter on renting back its own chips from cloud partners who otherwise cannot lease them out, with these contracts rising to $26 billion, more than double the previous quarter.
Cloud giants like Microsoft and Amazon continue to pour billions into AI data-centre expansion, but some investors question whether the current pace of spending is artificially inflated. Nvidia’s revenue concentration is also rising, with four customers now accounting for 61 percent of sales, up from 56 percent in the prior quarter. The company has meanwhile invested billions in AI start-ups, including a decision in September to invest up to $100 billion in OpenAI.
U.S. export restrictions have largely blocked Nvidia from selling high-end chips in China, forcing the company to look elsewhere for growth. On Wednesday, the Commerce Department authorised the export of the equivalent of up to 35,000 Nvidia Blackwell chips to two companies in Saudi Arabia and the UAE, a shipment valued at well above $1 billion by market estimates.
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