Nvidia Corporation delivered another blockbuster earnings report on Wednesday, posting record quarterly revenue of $57 billion that exceeded Wall Street expectations by $2 billion, while CEO Jensen Huang used the earnings call to directly address mounting concerns about an artificial intelligence bubble.
Record-Breaking Financial Performance
The chip giant’s third-quarter 2025 results showcased the continued dominance of its data center business, which generated the vast majority of the company’s revenue growth. Nvidia reported net income of nearly $32 billion for the quarter, demonstrating the extraordinary profitability of its AI-focused GPU business.
“Sales are off the charts,” Huang declared during the earnings call, specifically highlighting the performance of the company’s latest Blackwell chips. “Cloud GPUs are sold out.” The CEO’s enthusiasm was backed by concrete numbers, with Nvidia projecting even higher revenue of $65 billion for the fourth quarter of 2025, surpassing analyst estimates of $62 billion.
CEO Addresses AI Bubble Speculation
Huang didn’t shy away from the elephant in the room during Wednesday’s call. “There’s been a lot of talk about an AI bubble,” he acknowledged before pivoting to his main argument. “From our vantage point, we see something very different.”
The CEO spent approximately five minutes explaining how Nvidia would sustain unprecedented customer demand, arguing that AI adoption is accelerating across all industries. “All industries, across every phase of AI, across all of the diverse computing needs in a cloud, and also from cloud to enterprise to robots,” will require Nvidia’s products, Huang emphasized.
Market Response and Investor Sentiment
Despite the strong financial results and Huang’s confident presentation, Wall Street’s reaction was mixed. Nvidia shares have declined approximately 10 percent in recent weeks after reaching an all-time high in late October. While the stock gained about 5 percent in after-hours trading following the earnings announcement, the increase wasn’t sufficient to fully recover recent losses.
The company’s stock performance reflects broader market uncertainty about the sustainability of AI investments and whether current valuations accurately reflect long-term prospects.
Strategic Investments and Partnerships
Nvidia has leveraged its AI windfall to make strategic investments in key customers and partners. The company has invested billions in AI companies including OpenAI, data center operator CoreWeave, and Elon Musk’s xAI, which develops the Grok chatbot.
During the earnings call, Huang addressed analyst questions about these investments, particularly the rationale for funding companies like OpenAI. “The partnership that we have with them is one so that we could work even deeper from a technical perspective, so that we could support their accelerated growth,” Huang explained. “I fully expect that investment to translate to extraordinary returns.”
The company also announced new partnerships this week, including an investment in OpenAI rival Anthropic to bring its Claude chatbot onto Nvidia chips for the first time.
Industry Impact and Future Outlook
Nvidia’s continued success has significant implications for the broader AI ecosystem. The company maintains approximately $500 billion in unfilled orders, according to executives, highlighting the persistent supply-demand imbalance in the AI chip market.
However, challenges remain on the horizon. About 90 percent of Nvidia’s sales now come from its data center business, representing a dramatic shift from its origins in gaming graphics cards. This concentration creates both opportunities and risks as the company becomes increasingly dependent on AI demand.
Potential headwinds include electricity and supply chain constraints that could slow data center construction, potentially impacting GPU sales in coming years. Additionally, competition is emerging from companies like Google, which recently announced that its Gemini 3 AI model was trained using Google’s own Tensor Processing Units rather than Nvidia GPUs.
Growth Trajectory and Projections
While Nvidia has more than doubled its annual revenue in each of the past two fiscal years, the company projects that growth will moderate to 64 percent when the current fiscal year ends in January. This deceleration, while still impressive by industry standards, reflects the mathematical challenges of maintaining exponential growth at Nvidia’s current scale.
The company’s three-year journey from a gaming-focused chip maker to the world’s most valuable publicly traded company began with OpenAI’s ChatGPT launch, which triggered massive demand for the specialized GPUs required to train and operate generative AI systems.
As Huang noted, “The number of customers coming to us and the number of platforms coming to us after they’ve explored others, is increasing, not decreasing,” suggesting that Nvidia’s competitive moat remains strong despite emerging competition.
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