New York, November 20, 2025
Nvidia shares surged following the company’s release of its third-quarter fiscal 2026 earnings, which significantly surpassed analyst expectations and eased widespread concerns about an AI-driven stock market bubble. The robust results were announced after the close of trading on November 19, 2025.
Fiscal Q3 Earnings Exceed Expectations
Nvidia reported earnings per share (EPS) of $1.30, marking a 60.5% increase year over year. Revenue rose 62.5% to $57.01 billion, outpacing analysts’ estimates of $1.25 EPS on $54.9 billion in revenue. The strong financial performance highlights Nvidia’s continued dominance in the semiconductor industry, fueling investor optimism.
Data Center Revenue Hits New Record
The company’s data center segment was the primary growth driver, generating a record $51.2 billion in revenue. This represents a 66% increase compared to the same quarter last year and a 25% sequential rise. The surge is attributed to accelerated computing and AI platforms, which have become essential in cloud computing and enterprise applications.
Upbeat Forward Guidance
Nvidia provided optimistic guidance for the next quarter, forecasting revenue near $65 billion and maintaining a 75% gross margin. This robust outlook further bolstered investor confidence, indicating sustained demand for Nvidia’s AI-driven technologies despite a volatile market environment.
CEO Jensen Huang Addresses AI Bubble Concerns
During the earnings call, CEO Jensen Huang dismissed fears that the AI sector is experiencing a speculative bubble. He emphasized Nvidia’s broad-based and sustainable business model, which includes chips, software, and networking infrastructure. Huang highlighted the company’s substantial backlog of orders as evidence of long-term growth prospects, reassuring investors during uncertain economic times.
Context Within the Broader Market
Nvidia’s performance comes amid notable volatility in technology stocks, where the “Magnificent Seven” group—of which Nvidia is a key member—has faced pressure due to concerns over overvaluation, US interest rate uncertainty, and geopolitical tensions in Asia. The strong quarterly earnings helped stabilize sentiment across the tech sector, demonstrating that robust fundamentals can counterbalance macroeconomic challenges.
The positive financial results and forward outlook reflect Nvidia’s critical role in powering AI advancements and data infrastructure. This positions the company favorably as demand for AI technologies accelerates globally, suggesting an ongoing trajectory of growth beyond short-term market fluctuations.