Fears surrounding a potential AI bubble saw a temporary reprieve following Nvidia’s impressive earnings report, released after the close of U.S. markets on Wednesday. The chipmaker exceeded Wall Street expectations for the third quarter, unveiling a staggering revenue figure of $57.01 billion, marking a 62% increase from the same period last year. This robust performance is attributed to the booming demand for AI technology, which is driving investments in Nvidia’s products.
CEO Jensen Huang highlighted that sales of the company’s Blackwell chips have been “off the charts,” and that their cloud GPUs are sold out. He noted, “Compute demand keeps accelerating and compounding across training and inference — each growing exponentially,” underscoring the essential role Nvidia plays in the AI ecosystem.
In after-hours trading, shares of Nvidia surged by 4%. Notably, the data center revenue, which represents a significant chunk of Nvidia’s income, reached $51.2 billion, surpassing analyst predictions of $49.34 billion.
Looking ahead, Nvidia provided a promising outlook for the fourth quarter, projecting revenue between $63.7 billion and $66.3 billion, surpassing Wall Street’s estimations of $62 billion. This optimistic forecast has helped to stabilize previously jittery crypto markets, with Bitcoin rallying back to over $90,000 after a near fall below $88,000 earlier in the day. AI-focused cryptocurrencies such as TAO, Near Protocol, ICP, and RNDR also experienced gains between 4% and 5% in the wake of Nvidia’s report.
Additionally, stocks of Bitcoin mining companies that have shifted towards AI infrastructure witnessed notable upticks. After facing significant declines due to general tech and crypto market sell-offs, companies such as IREN, Cipher Mining, and Hut 8 Mining saw increases of 8%, 11%, and 6%, respectively.
Nvidia’s results reinforce its pivotal position within the artificial intelligence supply chain. Its GPUs are indispensable for training large language models, supporting data centers, and executing machine-learning tasks across major technology firms. As the company prepares to hold a conference call at 5 PM ET, investors are keenly awaiting insights into how Nvidia’s substantial investments in AI infrastructure, software tools, and next-gen chips are likely to generate sustainable revenue in the future.
