Nvidia (NVDA) delivered a stunning earnings report on Tuesday, shattering Wall Street forecasts and sending its stock higher as CEO Jensen Huang pushed back against growing concerns about an AI bubble.
Blockbuster Results
The AI chip giant reported:
- Revenue: $57B vs. $55B estimated
- Data Center Revenue: $51B vs. $49.31B estimated
- EPS: $1.30 vs. $1.26 estimated
- Q4 Guidance: $65B vs. $61.98B estimated
The strong performance was driven by unprecedented demand for AI chips, with Huang calling Blackwell chip sales “off the charts.”
Confident Outlook
CFO Colette Kress revealed Nvidia is tracking toward “half a trillion” in AI chip orders through 2025-2026, noting this figure could grow as new deals emerge. The company plans to significantly expand its U.S. presence over the next four years.
China Challenges
Despite the strong results, Nvidia acknowledged headwinds in China, where export restrictions have prevented “sizable purchase orders” from being fulfilled. The company excluded China data center revenue from its Q4 projections but remains committed to engaging with both US and Chinese governments.
The AI Bubble Debate
The earnings come amid intense Wall Street debate about AI valuations. As Business Insider’s Joe Ciolli notes, the central question for investors is timing:
- Bulls are betting on long-term productivity gains
- Bears face the dilemma of when to exit positions
- Companies face growing pressure to show tangible returns on AI investments
With major partnerships with Anthropic, xAI, OpenAI, and hyperscalers continuing to drive growth, Nvidia’s performance suggests the AI boom has substantial runway despite the ongoing debate about its sustainability.
By James Kisoo
