The U.S. earnings season is coming to an end, and Nvidia is closing it with the strongest highlight yet. The results released on Wednesday evening clearly exceeded market expectations and once again demonstrated the company’s technological dominance. In after-hours trading, Nvidia’s shares rose by around 7%, indicating a highly positive reaction from investors. And yet, questions about a potential bubble and the company’s lofty valuation remain.
Nvidia has once again broken its own records. Third-quarter revenue reached $57 billion, up 62% year over year and a full $10 billion more than in the previous quarter. The data-center segment—now the main engine of the artificial intelligence boom—accounted for more than $51 billion in sales. That’s 66% more than a year ago.
The company not only beat consensus estimates but also raised its guidance for the next quarter to $65 billion in revenue. This is once again more than analysts had forecast. It reinforces the view that demand for AI chips is structural rather than temporary. CEO Jensen Huang directly rejected suggestions of a bursting AI bubble, stressing that demand for chips remains strong and long-term.
Nvidia’s growth demonstrates not only the strength of the company but also the scale of transformation happening across the tech sector. In just three months, the company’s revenue grew by 22%—an extraordinary pace for a business of its size. And this happened despite export restrictions that bar Nvidia from selling certain products to China. Revenue from China was not included in the company’s forecast for next quarter. Nvidia has made it clear it will focus on other regions.
The market reaction to the results was overwhelmingly positive. In after-hours trading—overnight from Wednesday to Thursday—Nvidia’s stock climbed roughly 7%. On Thursday morning, improved sentiment was visible across Asia as well, with indices opening higher and investors eagerly buying AI-related companies.
Still, skepticism persists. Nvidia’s forward price-to-earnings ratio hovers around 32.5, significantly above the broader market average. Rising inventories—up 32% quarter over quarter—raise questions about future sales momentum. Even more notable was the rise in purchase obligations, which jumped 63% in a single quarter.
There is also concern over rising costs. Although gross margins remain at record levels—above 73% on a non-GAAP basis—higher energy prices and constraints in available computing power could weigh on profitability in the long term.
Demand for AI chips is growing faster than manufacturers can keep up. Nvidia is expanding partnerships with leading companies, including AWS and HUMAIN, with plans to deploy as many as 150,000 AI accelerators.
At the same time, a new constraint is emerging—energy supply. The surge in demand for computing power means that chips are no longer the bottleneck; access to electricity may soon become the limiting factor in the AI revolution. Nvidia reports that many of its customers face this problem, with data centers often unable to proceed due to insufficient grid capacity.
The published results highlight one thing: AI has become a true engine of the global economy, backed by real numbers, revenues, and investments. Nvidia has once again set the bar extremely high. But it has also shown that the race is only just beginning. Strong Nvidia results are lifting the entire market, strengthening confidence in the U.S. tech sector and potentially fueling a year-end rally.
