Nvidia has released revenue forecasts significantly higher than expected, rejecting the idea that the artificial intelligence sector is experiencing a speculative bubble. For the fourth quarter, the company estimates sales of around $65 billion, about $3 billion above analysts’ estimates. CEO Jensen Huang stressed that demand for its AI accelerators remains robust and set to grow, with a potential turnover that could exceed the already announced $500 billion.
The reaction of the title
The news pushed Nvidia shares up 5% in the post-market, bringing the capitalization to $4.5 trillion and dragging with it other AI-related stocks, such as CoreWeave (+9%) and Nebius (+8%). A strong rise which places the stock close to 196 dollars per share with a high reached at 198.60. Positive quarterly, positive reaction, but the stock still remains well below the highs seen over the last few weeks, explains David Pascucci – Market Analyst at XTB.
“The quarterly report is certainly excellent, Nvidia could reach 200 billion dollars in turnover during 2025, we are talking about a company that is sensational to say the least from the point of view of results, but doubts remain about the prices”. Does the capitalization of 5 trillion dollars correspond to reality, or are we in a bubble? Seeing the results, the expert underlines, “it could also be plausible, but comparing Nvidia’s capitalization with other economic quantities, we are absolutely out of comparison.”
Third quarter results
In the third quarter, ended October 26, Nvidia recorded $57 billion in revenues (+62%) and earnings of $1.30 per share, beating consensus estimates. The main data center division generated over 51 billion in revenue, confirming the central role of AI in the historic gaming business.
There is no shortage of challenges
US restrictions on the export of advanced chips to China have eliminated sales prospects in that market. Additionally, some investors are wary of mega-deals with startups like OpenAI and Anthropic, fearing they could artificially inflate demand. Nvidia and Microsoft have announced investments of up to $15 billion in Anthropic, which in turn has committed to purchasing $30 billion in cloud capacity on Azure.
Despite growing competition from AMD, Broadcom and Qualcomm, Nvidia CEO Huang reiterated that competitive pressure remains limited and that the complexity of AI systems favors Nvidia, which holds over 90% of the accelerator market. The company now aims to spread the use of AI also in the physical world, with robots and intelligent devices, consolidating its technological leadership.
