Nvidia Beats Revenue Estimates and Raises Outlook Amid AI Market Concerns
Nvidia reported quarterly results that surpassed Wall Street’s expectations for both revenue and future sales, easing investor concerns about heavy AI spending that has unsettled markets in recent weeks. The company said revenue for the three months ending in October rose 62% to $57 billion, driven largely by demand for chips used in AI data centers. Sales from that division increased 66% to more than $51 billion.
Nvidia’s forecast for fourth-quarter revenue between $65 billion sent its shares up about 4% in after-hours trading. The company, currently the world’s most valuable publicly traded firm, is widely viewed as a gauge for the strength of the AI boom.
AI Chip Demand Fuels Growth Despite Market Worries
CEO Jensen Huang said sales of Nvidia’s AI Blackwell systems were “off the charts” and that cloud GPUs were “sold out.” During a call with analysts, he addressed broader debate about AI valuations, saying the company sees “something very different” from the concerns surrounding an AI bubble. “We excel at every phase of AI,” he said.
The company’s results drew heightened attention as fears about overvalued AI stocks contributed to four consecutive daily declines in the S&P 500 index before the report. The benchmark index has fallen nearly 3% so far in November.
Analysts said expectations for Nvidia were high. Adam Turnquist of LPL Financial said investors were watching not whether Nvidia would exceed projections, but by how much. Matt Britzman at Hargreaves Lansdown said certain parts of the AI sector may need a pause, but Nvidia was not part of that trend.
Investor Focus Turns to AI Chip Orders and Export Restrictions
Huang has previously said he anticipates $500 billion in AI chip orders through next year. Investors sought clarity on when that revenue may materialize and how the company plans to meet the volume. CFO Colette Kress told analysts the company would “probably” accept more orders beyond the $500 billion already discussed.
Kress also expressed concern about U.S. export rules that limit Nvidia’s ability to sell advanced chips to China. She said the U.S. “must win the support of every developer,” including those in China, and added that Nvidia remains committed to discussions with both American and Chinese officials.
Saudi AI Data Center Project Adds New Demand for Nvidia Chips
Huang appeared alongside Elon Musk at the U.S.–Saudi Investment Forum in Washington earlier on Wednesday to announce a new data center complex in Saudi Arabia. Musk’s AI company, xAI, will be the complex’s first customer, and the facility will use hundreds of thousands of Nvidia chips.
The Wall Street Journal reported that the U.S. Commerce Department approved the sale of up to 70,000 advanced AI chips to state-backed firms in Saudi Arabia and the United Arab Emirates, reversing an earlier stance. The approval followed talks between U.S. President Donald Trump and Saudi Crown Prince Mohammed bin Salman during the prince’s visit to the White House.
AI Spending Surge Across the Tech Sector Continues
Major technology companies have increased their spending on AI infrastructure, as shown in recent earnings reports from Meta, Alphabet, and Microsoft. These firms highlighted sizable investments in data centers, chips, and large-scale compute systems.
Alphabet CEO Sundar Pichai told the BBC that AI investment has been an “extraordinary moment” but noted that parts of the market show “irrationality.” Other industry leaders have issued similar cautions.
Nvidia sits at the center of a network of agreements among leading AI companies, including OpenAI, Anthropic, and xAI. The structure of these deals has drawn scrutiny due to the circular investment patterns emerging across the industry. They include Nvidia’s $100 billion investment in OpenAI, the maker of ChatGPT.
Featured image credits: Traders Union
For more stories like it, click the +Follow button at the top of this page to follow us.