Nvidia Q3 eases fears of AI bubble bursting
November 20, 2025
Nvidia has reported record revenue of $57 billion (€49.4bn) for the third quarter ended October 26th 2025 – up 22 per cent from the previous quarter and up 62 per cent from a year ago.
For the quarter, GAAP and non-GAAP gross margins were 73.4 per cent and 73.6 per cent, respectively. For the quarter, GAAP and non-GAAP earnings per diluted share were both $1.30.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” commented Jensen Huang, founder and CEO of Nvidia. “Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”
During the first nine months of fiscal 2026, Nvidia returned $37 billion to shareholders in the form of shares repurchased and cash dividends. As of the end of the third quarter, the company had $62.2 billion remaining under its share repurchase authorisation.
Reacting to the results, Kate Leaman, chief market analyst at AvaTrade, commented: “In an earnings season clouded by scepticism around tech valuations, Nvidia’s Q3 2025 results seriously cut through the noise. With $57 billion in quarterly revenue and $31.9 billion in profit, Nvidia didn’t just beat Wall Street expectations. It reminded investors why it sits at the very centre of the AI revolution.”
“The star of the show was its data centre segment, which delivered $51 billion in sales, proof that cloud giants like Amazon, Google, and Microsoft are still pouring billions into AI infrastructure. Far from pulling back, they’re doubling down. This effectively put all chatter about AI bubbles to bed, at least for today.”
“CEO Jensen Huang described demand for Nvidia’s Blackwell chips as ‘off the charts’, and the numbers back that up, with over $500 billion in related orders already booked through 2026. Rather than a bubble, this is a market racing ahead of supply.”
“And in terms of forward guidance, Q4 revenue is guided at $65 billion. This indicates that the AI boom isn’t slowing – instead, it’s broadening. From generative AI and autonomous driving to virtualised computing, Nvidia is touching every layer of future tech. Even physical constraints like land and power are starting to show up as the next bottlenecks, rather than demand. Investor confidence surged post-earnings, with Nvidia shares climbing after hours and lifting much of the tech sector with it. Analysts widely agree: Nvidia quelled doubts, renewed optimism, and gave fresh fuel to the AI-led rally powering through 2025,” she concluded.
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