US semiconductor giant Nvidia closed the third quarter of fiscal 2025 with revenues increasing to $35.1 billion, up by 94% compared to the same period last year and above the expectations of analysts who were betting on 33.25 billion. This is, however, a slowing growth, if we consider the increase in revenues, in the previous three quarters, by 112%, 262% and 265%.
Nvidia is full of profits and revenues
Net profit rose to 20.01 billion, according to GAAP standards, above market forecasts. Nvidia’s results are considered a barometer for the artificial intelligence technology sector.
Stocks falling on Wall Street with disappointing revenue estimates
Despite the resultsNvidia stock fell in the after hours on Wall Street, coming to lose up to 5%, after the company announced lackluster forecastson revenue, for the fourth quarter of fiscal 2025. For the period, Nvidia expects revenues of $37.5 billion “plus or minus 2%”: estimates that have not fully met the most optimistic market expectations.
The titles since the beginning of the year Nvidia are up more than 200% with the AI race, causing the value of the chip giant to skyrocket to 3,600 billion.
Blackwell Chip News
Founder and CEO Jensen Huang said the Blackwell chip, designed for artificial intelligence tasks, is now in “full production.” Last summer, Nvidia postponed shipping of its Blackwell chips due to design flaws, delaying deliveries by a few months. Huang, however, reassured investors by stating that all problems had been resolved thanks to close collaboration with TSMC, one of the main semiconductor manufacturers in the world. Nvidia controls 80% of the semiconductor market for AI, but it has to deal with the ever-increasing competition. Some of its biggest customers, in fact, from Amazon to Google, are working to produce their own AI chips and reduce their dependence on Nvidia.
The ECB raises the alarm: “Risk of financial bubble”
According to the European Central Bank, there is too much concentration in a few companies. “If profits do not reflect investors’ expectations, there will be negative repercussions on the stock markets.” The warning from the Frankfurt bank is written in the pages of its six-monthly study “Financial stability review”.
There ECB underlines that the stock market, particularly in the United States, it has become increasingly dependent on a handful of companies that, even in the perception of investors, are getting rich thanks to the spread of AI. Their stocks have grown at exceptional rates on the stock market, but there is a risk that this boom could easily turn into a bubble.
