Nvidia reports record $57bn revenue, defying AI spending concerns

Nvidia reports record $57bn revenue, defying AI spending concerns

Nvidia posted stronger-than-expected quarterly earnings on Wednesday, reporting a **62% revenue surge to $57 billion** for the three months ending in October, driven by soaring demand for its AI data center chips. The results eased investor fears about overheated artificial intelligence spending, which had rattled markets in recent weeks.

The company's AI data center division-its largest revenue driver-saw sales climb **66% to over $51 billion**, while fourth-quarter forecasts of **$65 billion** exceeded Wall Street projections. Shares rose **4% in after-hours trading** following the announcement.

"There's been a lot of talk about an AI bubble. From our vantage point, we see something very different," said CEO **Jensen Huang**, noting that sales of Nvidia's latest **Blackwell AI systems** were "off the charts."

Jensen Huang, Nvidia CEO

Huang added that **cloud-based GPUs were sold out**, declaring, "We excel at every phase of AI." The Santa Clara-based firm, now the world's most valuable company, remains a key barometer for the broader AI sector.

Market jitters persist despite blockbuster results

The earnings report arrived amid mounting concerns over **AI stock valuations**, which some analysts compare to the late-1990s dotcom bubble. The **S&P 500** had suffered four consecutive daily declines ahead of Nvidia's announcement, with the index dropping nearly **3% in November** as investors questioned returns on AI investments.

"The question wasn't whether Nvidia would beat expectations, but by how much," said **Adam Turnquist**, chief technical strategist at LPL Financial. **Matt Britzman**, senior equity analyst at Hargreaves Lansdown, echoed optimism, stating, "While AI valuations dominate headlines, Nvidia is executing flawlessly."

Nvidia had previously forecast **$500 billion in AI chip orders** over the next year. Investors sought clarity on fulfillment timelines, while CFO **Colette Kress** hinted at additional orders beyond the announced total. However, she lamented **U.S. export restrictions** limiting sales to China, urging policymakers to "win the support of every developer," including those in the region.

Global AI expansion amid regulatory hurdles

Earlier Wednesday, Huang joined **Elon Musk** at the **U.S.-Saudi Investment Forum** in Washington to unveil a **massive data center** in Saudi Arabia, powered by **hundreds of thousands of Nvidia chips**. Musk's AI startup **xAI** will anchor the facility as its first customer.

The project follows a **U.S. Commerce Department decision** to approve sales of up to **70,000 advanced AI chips** to state-backed entities in **Saudi Arabia and the UAE**, reversing prior restrictions. The move came after talks between **President Donald Trump** and Saudi Crown Prince **Mohammed bin Salman**, who met at the White House this week.

Industry warnings of "irrationality" in AI boom

Nvidia's results contrast with cautionary notes from other tech leaders. **Sundar Pichai**, CEO of Google parent **Alphabet**, told the BBC that while AI investment growth was "extraordinary," there was "some irrationality" in the current boom. **Simon French**, chief economist at Panmure Liberum, drew parallels to the **1999 dotcom bubble**, warning that unprofitable segments of the tech ecosystem could face risks.

Critics highlight **circular investments** among AI firms, including Nvidia's **$100 billion stake in OpenAI** (creator of ChatGPT). **Eileen Burbidge**, founding partner at Passion Capital, noted that many deals involve "10 to 20 companies trading investments back and forth," fueling skepticism about sustainability.

What's next for Nvidia and the AI sector?

With Nvidia at the center of a **web of AI partnerships**, including ties to **OpenAI, Anthropic, and xAI**, analysts will watch whether its momentum can offset broader market volatility. The company's ability to navigate **regulatory challenges**-particularly in **China and the Middle East**-will also be critical as demand for AI infrastructure grows.

Wall Street now awaits further details on Nvidia's **$500 billion order pipeline** and how it plans to scale production amid geopolitical tensions and supply chain constraints.