AI Bubble Concerns Ease as NVIDIA Reports Record $57.01B Revenue

NVIDIA, the company at the forefront of the artificial intelligence (AI) revolution, delivered earnings that surpassed Wall Street expectations, once again easing fears of an “AI bubble.” Shares of the chipmaker jumped more than 5% in after-hours trading following the announcement.

Revenue and profit surge beyond forecasts

On November 19 (local time), the company reported third-quarter revenue of $57.01 billion (about 83.4 trillion Korean won) for the August–October period, with earnings per share (EPS) of $1.3. Both figures beat market estimates compiled by LSEG, which had projected $54.92 billion in revenue and EPS of $1.25. Compared to the same quarter last year, revenue climbed 62% while net profit soared 60%.

Growth outlook remains strong

Looking ahead, NVIDIA expects momentum to continue into the fourth quarter (November–January), forecasting revenue of $65 billion. CEO Jensen Huang highlighted the overwhelming demand for the company’s latest “Blackwell” GPUs, noting that cloud-based GPUs are already sold out. “We have entered a virtuous cycle of AI,” Huang said, underscoring the company’s dominant position in the industry.

Analysts say results undermine AI Bubble debate

Industry experts view NVIDIA’s performance as a key measure of the AI sector’s strength. During a post-earnings conference call, Huang dismissed speculation of an AI bubble. “There’s a lot of talk about an AI bubble, but from our perspective, it looks completely different,” he said. “Demand for AI continues to grow explosively, and the true expansion of the AI industry has only just begun.”

Corporate investment in AI infrastructure

Commenting on the wave of corporate bond issuances by major firms to fund AI initiatives, Huang emphasized that financing is the responsibility of customers. “Our role is to provide the infrastructure they can rely on,” he added.

Stock rebounds amid easing AI Bubble concerns

NVIDIA’s shares, which had recently dipped amid concerns of overvaluation in the AI sector, surged more than 6% in after-hours trading, reflecting renewed investor confidence in the company’s growth trajectory.