Nvidia has reported stronger-than-expected quarterly results, easing investor concerns about heavy artificial intelligence spending that has unsettled markets. Revenue for the three months to October rose 62 percent to $57 billion, driven largely by demand for the company’s chips used in AI data centres. Sales from that division increased 66 percent to more than $51 billion.
The company forecast fourth-quarter sales of up to $65 billion, surpassing analyst expectations and pushing Nvidia shares up about 4 percent in after-hours trading.
“There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” chief executive Jensen Huang said. He added that sales of Nvidia’s AI Blackwell systems were “off the charts” and that cloud GPUs were sold out.
Nvidia, the world’s most valuable company, is considered a key indicator of the AI boom, and its results were closely watched amid mounting concern that AI stocks may be overvalued. Those fears recently contributed to four consecutive daily declines in the S&P 500, which is down nearly 3 percent so far in November.
The surge in AI valuations has drawn comparisons to the late-1990s dotcom boom, when early internet companies saw soaring valuations before the bubble burst in 2000. Some analysts say the current AI rally shows similar signs of overheating.
Still, Nvidia continues to exceed expectations. “While AI valuations are dominating the news feeds, Nvidia is going about its business in style,” said Matt Britzman of Hargreaves Lansdown.
Investors were also looking for updates on Huang’s earlier forecast of $500 billion in AI chip orders expected through next year. Chief financial officer Colette Kress told analysts the company would “probably” take additional orders beyond that figure.
She also expressed frustration over US export restrictions that limit Nvidia’s ability to sell advanced chips to China, saying the US “must win the support of every developer,” including those in China. Kress said the company remains committed to engagement with both US and Chinese officials.
Nvidia’s profile in global AI partnerships continues to grow. At the US-Saudi Investment Forum in Washington, Huang and Elon Musk announced a massive Saudi data centre complex, where Musk’s AI company xAI will be the first customer. The facility will be equipped with hundreds of thousands of Nvidia chips.
The Wall Street Journal reported that the US Commerce Department has approved the sale of up to 70,000 advanced AI chips to state-backed companies in Saudi Arabia and the United Arab Emirates, reversing an earlier decision. The arrangement was reached after discussions between President Donald Trump and Saudi Crown Prince Mohammed bin Salman during the crown prince’s White House visit.
Tech giants including Meta, Alphabet and Microsoft have also reported major AI-related spending, reinforcing the intensity of the current investment wave. Alphabet chief executive Sundar Pichai said the surge has been “extraordinary,” though he acknowledged “elements of irrationality” in the boom.
Some economists say the bubble concerns stem less from well-established firms like Nvidia and more from the broader tech ecosystem, where many companies remain unprofitable. Nvidia is also at the centre of a network of investment deals involving major AI players such as OpenAI, Anthropic and xAI. These arrangements have drawn scrutiny because of their circular nature, including Nvidia’s $100 billion investment in OpenAI.
Tech investor Eileen Burbidge said worry about the AI market stems partly from the appearance of “circular deals,” where Nvidia invests in a company that then commits to buying Nvidia chips or investing back in Nvidia. She said that only a small group of firms appears to be involved in these closely linked agreements.
