Nvidia Shares Gain After Surpassing Earnings Expectations
Nvidia’s shares surged following its latest quarterly earnings report, easing concerns about a possible AI-fueled stock market bubble.
Key numbers at a glance
- Revenue: $57 billion (€49.5 billion), up 62% year-over-year
- Data center revenue: $51.2 billion (€44.4 billion), above forecasts
- Next-quarter guidance: $65 billion (€56.4 billion) vs. Wall Street’s $61 billion (€52.9 billion)
- Stock reaction: up more than 5% after-hours
Quarterly results beat expectations
Released on Wednesday, the company’s financial results for the quarter ending in October surpassed analyst predictions. Nvidia saw revenue rise by 62% year-over-year, reaching $57 billion (about €49.5 billion). Of that, the company generated $51.2 billion (€44.4 billion) from its data center division, exceeding forecasts. Looking ahead, Nvidia projects revenue of $65 billion (€56.4 billion) for the current quarter—well above Wall Street’s expected $61 billion (€52.9 billion).
Market reaction and sentiment
Shares jumped more than 5% in after-hours trading as investors reacted to these robust results. Recent market volatility saw Nvidia’s stock decline by 11% earlier this month amid broader skepticism over AI-related valuations. However, the new earnings report appears to have reassured investors and eased fears of an AI-fueled speculative bubble.
CEO Jensen Huang’s perspective
“There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different.”
Huang highlighted Nvidia’s comprehensive capabilities across all aspects of artificial intelligence, from model development to real-world application.
Where Nvidia is focusing in AI
Huang noted Nvidia’s focus on critical growth areas in AI, including generative, agentic, and physical AI technologies:
- Generative AI: Systems that create new content.
- Agentic AI: Automates specific tasks with minimal supervision.
- Physical AI: Applies to robotics and interactions with the real world.
Broader market impact
Nvidia’s massive size and importance to the tech sector mean it strongly influences key indices like the S&P 500. Its chips are central to advances in artificial intelligence, making the company a bellwether for the sector.
Bottom line
With this quarter’s result, Nvidia helped calm fears that AI-driven stocks are in a speculative bubble, at least for now.
