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Nvidia surpasses Wall Street expectations with record-breaking revenue driven by booming AI chip sales, yet faces challenges from geopolitical trade tensions and market scepticism about long-term growth.
Nvidia has once again exceeded Wall Street expectations with its latest quarterly earnings, underscoring the robust demand for its chips that power the current artificial intelligence boom. For the three months ending in October 2025, the company reported revenue of $57 billion, reflecting a 62 percent increase year-on-year and surpassing consensus estimates of $55 billion. This strong performance reassured investors that Big Tech’s AI spending spree is poised to continue, with Nvidia forecasting revenue of $65 billion for the current quarter, about $3 billion above market expectations.
The chipmaker’s shares responded enthusiastically, rising as much as 6 percent in after-hours trading following the results. Jensen Huang, Nvidia’s CEO, highlighted the exceptional demand for their latest Blackwell graphics processing units (GPUs), which are crucial for training and running sophisticated AI systems such as OpenAI’s ChatGPT. “Blackwell sales are off the charts, and cloud GPUs are sold out,” Huang said. He added that the computing power demand “keeps accelerating and compounding … We’ve entered the virtuous cycle of AI,” reinforcing the company’s central role in the global AI surge.
Despite the strong earnings, Nvidia’s stock had been down 11 percent from its peak in early November, reflecting broader market concerns about the high valuations of US tech giants and their significant capital expenditure on chips and data centres. Bank of America analysts acknowledged Nvidia’s challenge in meeting lofty earnings expectations amid scepticism surrounding AI-related capital spending. Nevertheless, industry experts like Daniel Newman, CEO of The Futurum Group, interpreted the results as a sign the momentum behind AI remains intact, suggesting that “at some point the doubters are going to have to start to believe.”
Nvidia’s quarterly net income stood at $31.9 billion, beating estimates of $30 billion, with a gross margin of 73.4 percent. The standout performer was the data centre segment, driven by AI chip sales, which registered revenue of $51.2 billion, well above the $49 billion forecast. The company reported continued strong demand for last year’s Blackwell chips even while ramping up shipments of the newer Blackwell Ultra.
However, Nvidia disclosed potential headwinds for AI growth linked to its customers’ ability to secure capital and energy for expanding AI data centres. The company warned that customers with less financial muscle might face challenges in financing large-scale infrastructure projects, which could delay AI adoption. This cautionary note marks a new element in Nvidia’s outlook and speaks to broader concerns about the sustainability of the AI infrastructure build-out.
While Nvidia benefits from surging AI demand, it remains largely excluded from China’s data centre market, where local firms face government pressure to use domestic alternatives. Sales of the H20 chip, tailored for the Chinese market to comply with US export controls, were described as “insignificant” during the quarter. Nvidia’s revenue guidance for the coming months does not factor in any potential growth from China, reflecting ongoing geopolitical trade tensions that continue to shape the AI chip landscape.
Nvidia is also significantly investing in expanding cloud computing infrastructure, with spending on “multiyear cloud service agreements” more than doubling to $26 billion compared to the previous quarter. This includes agreements to source computing power from third-party AI cloud services, exemplified by a recent $6 billion deal with CoreWeave. Industry observers have noted the “circular” nature of such arrangements, where Nvidia supplies chips to large customers like OpenAI, which, in turn, plans to invest billions back into Nvidia, reinforcing a symbiotic ecosystem.
This latest quarter builds on Nvidia’s impressive multi-year growth trajectory. For context, in the third quarter of fiscal 2025, Nvidia reported $35.1 billion in revenue, more than doubling year-on-year at that time, with data centre sales driving much of the surge. The company’s ability to sustain such growth amid economic uncertainties and geopolitical challenges speaks to the pivotal role its technology plays in the AI revolution.
Nvidia’s gross margin is expected to peak at 75 percent in the current quarter as the company plans to absorb the costs associated with launching its newest Blackwell technology. The company’s brief flirtation with a $5 trillion market capitalisation in October, powered by bullish revenue projections and hopes of a US-China trade breakthrough, did not fully materialise given ongoing tensions around chip exports to China.
As Nvidia moves forward, its results underscore the complexity of balancing skyrocketing demand for AI computing with the financial and geopolitical realities that could influence the pace of AI adoption worldwide. For now, Nvidia remains at the heart of this transformative technology wave, delivering strong earnings that highlight both the opportunities and challenges ahead.
📌 Reference Map:
- [1] (Financial Times) – Paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11
- [2] (Nvidia News) – Paragraphs 1, 3, 5
- [3] (Nvidia News) – Paragraph 5
- [4] (Nvidia Investor Relations) – Paragraph 5
- [5] (Nvidia Investor Relations) – Paragraph 5
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is based on Nvidia’s official earnings report for Q3 Fiscal 2026, released on November 19, 2025. ([investor.nvidia.com](https://investor.nvidia.com/news/press-release-details/2025/NVIDIA-Announces-Financial-Results-for-Third-Quarter-Fiscal-2026/default.aspx?utm_source=openai)) This is the first publication of this specific information, ensuring high freshness. ([investor.nvidia.com](https://investor.nvidia.com/news/press-release-details/2025/NVIDIA-Announces-Financial-Results-for-Third-Quarter-Fiscal-2026/default.aspx?utm_source=openai))
Quotes check
Score:
10
Notes:
Direct quotes from CEO Jensen Huang, such as “Blackwell sales are off the charts, and cloud GPUs are sold out,” are directly sourced from the earnings report. ([investor.nvidia.com](https://investor.nvidia.com/news/press-release-details/2025/NVIDIA-Announces-Financial-Results-for-Third-Quarter-Fiscal-2026/default.aspx?utm_source=openai)) No evidence of these quotes being used elsewhere prior to this report was found, indicating originality.
Source reliability
Score:
10
Notes:
The narrative originates from Nvidia’s official earnings report, a primary source document, ensuring high reliability. ([investor.nvidia.com](https://investor.nvidia.com/news/press-release-details/2025/NVIDIA-Announces-Financial-Results-for-Third-Quarter-Fiscal-2026/default.aspx?utm_source=openai))
Plausability check
Score:
10
Notes:
The reported figures align with Nvidia’s historical performance and recent market trends. The claim of record revenue and strong demand for Blackwell GPUs is consistent with Nvidia’s strategic focus on AI and data centre growth. ([investor.nvidia.com](https://investor.nvidia.com/news/press-release-details/2025/NVIDIA-Announces-Financial-Results-for-Third-Quarter-Fiscal-2026/default.aspx?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is based on Nvidia’s official earnings report, featuring original quotes and data that align with the company’s recent performance and strategic focus. No signs of disinformation or recycled content were found, indicating a high level of credibility.
