Nvidia Corp. beat Wall Street expectations and reinforced its position at the center of the global artificial intelligence boom. The report arrived as analysts question whether the rapid expansion of artificial intelligence spending is sustainable.
The company posted $57 billion in revenue for the quarter ending in October, setting a new quarterly sales record. According to ABC News, this reflects “nearbottomless demand” for Nvidia chips, which powers the bulk of today’s AI systems.
Despite the strong results, the market reaction was mixed. Nvidia shares fell nearly 3% in the first trading session after earnings, signaling lingering investor caution.
Nvidia executives pushed back on the idea that the industry is in bubble territory. According to the Wall Street Journal, Nvidia CEO Jensen Huang addressed the is- sue directly, saying the company sees “something very different.”
Nvidia’s soaring data-center business surpassed $50 billion in quarterly revenue for the first time, with growth into one of the largest in the entire semiconductor industry.
Its dominance extends across much of the AI ecosystem. The company now controls roughly 90% of the market for chips used in AI projects, a level that has made its earnings a bellwether for the broader tech sector.
Profit growth has matched that scale. Nvidia earned $31.9 billion last quarter, a 65% increase from a year earlier. Only Alphabet Inc. out earned Nvidia among major U.S. tech firms during the same period, The New York Times reported.
The company’s results immediately reverberated across global markets. Tech stocks in Europe, Asia and the U.S. rallied following Nvidia’s report, with semiconductor manufacturers and AI-linked firms posting early gains, according to CNBC. Nvidia expects about $65 billion in revenue next quarter, ahead of Wall Street forecasts. Huang described recent sales trends as “off the charts,” CNN reported.
Long-term projections point toward even greater growth in AI infrastructure. Nvidia CFO Colette Kress said annual spending could reach $3 trillion to $4 trillion by the end of the decade.
AI spending is projected to rise from $375 billion this year to $500 billion by 2026, according to ABC News.
Nvidia’s rapid climb has also reshaped the U.S. stock market. Just weeks ago, the company be- came the first public firm to surpass a $5 trillion valuation with the AI boom lifting tech equities.
That rise hasn’t come without scrutiny. Some analysts have raised concerns about Nvidia’s “circular deals” with AI companies, including a recent partnership with Anthropic involving billions in investment and computing credits, according to The New York Times.
Nvidia defended its strategy, arguing that investing directly in AI startups strengthens its software ecosystem and ensures long-term demand for its chips. The company believes these partnerships are critical to advancing cutting-edge AI research.
Stock indices slipped shortly after the earnings release, suggesting investors remain sensitive to shifts in AI spending.
Even so, investor enthusiasm is far from fading. CNBC noted that Nvidia shares rose nearly 5% in after-hours trading as investors continued to perceive the company as the strongest player in the AI supply chain.
For now, Nvidia’s results suggest that predictions of an imminent AI bubble may be premature. But the company’s central role in the global AI economy means that any slowdown in spending across Big Tech, cloud computing or startups could have rapid and far reaching effects.
If AI investment continues at its current pace, Nvidia’s dominance appears secure with a sustainable momentum ahead.
