Nvidia blew past Wall Street expectations posting revenue of $57 billion in the three months ending October (up 62% from a year ago) beating analyst estimates of $55 billion. Its forecast for the current quarter is even more eye-popping: $65 billion, far above the $62 billion Wall Street pre-empted.

Shares surged nearly 4% in after-hours trading, adding to a 2.8% gain earlier in the day, as investors cheered signs that AI spending by Big Tech shows no signs of slowing. “Blackwell sales are off the charts, and cloud GPUs are sold out,” said CEO Jensen Huang, referring to Nvidia’s latest AI-focused chips, which power systems like OpenAI’s ChatGPT.

The company posted net income of $31.9 billion, beating estimates of $30 billion, and gross margins held at an impressive 73.4%. Data centre revenue, driven by AI chip sales, reached $51.2 billion, topping forecasts of $49 billion. Nvidia said demand for its existing Blackwell chips remained strong even as shipments of its new Blackwell Ultra began in earnest.

The blockbuster results come at a time when tech stocks have been under pressure, with investors worried about lofty valuations and huge capital expenditure on chips and data centres.

Nvidia also signalled continued optimism, forecasting gross margins of 75% in the current quarter, as the company continues to scale its AI chip business.

The results represented Nvidia’s first major update since shipments began for its newest generation of AI accelerators, a product cycle that analysts said had the potential to further extend the company’s lead in the rapidly expanding artificial-intelligence market.

Nvidia CFO Colette Kress also addressed U.S. export bans that have prevented the company from shipping high-powered chips to China. “While we were disappointed in the current state that prevents us from shipping more competitive data centre compute products to China, we are committed to continued engagement with the U.S. and China governments,” she said. “We will continue to advocate for America’s ability to compete around the world to establish a sustainable leadership position in AI.”

The results represented Nvidia’s first major update since shipments began for its newest generation of AI accelerators, a product cycle that analysts said had the potential to further extend the company’s lead in the rapidly expanding artificial-intelligence market.

Greg Ramos, a partner at national law firm Armstrong Teasdale who advises clients on technology investments, offered the following comment: “Jensen Huang said, “AI is going everywhere, doing everything, all at once.” That’s exactly what a bubble feels like, and to many the current AI bubble feels very much like the Dot-Com bubble and resulting crash from which it took 15 years to recover.  Infrastructure spending is soaring, but we have yet to see sufficient enterprise and consumer demand of AI applications to justify that spend. Time will tell whether these massive infrastructure bets will pay off.”

Earlier this week, Nvidia and Microsoft pledged to invest up to $10 billion and $5 billion, respectively, in AI startup Anthropic. The partnership will allow Anthropic to bring its Claude AI models to Microsoft Azure while adopting Nvidia architectures, including Grace Blackwell and Vera Rubin systems, with an initial compute commitment of one gigawatt.

The partnership aims to optimise Anthropic’s AI models for performance, efficiency, and total cost of ownership, while expanding access to Claude for Azure enterprise customers and Microsoft Copilot services. Analysts noted that such partnerships could further cement Nvidia’s dominance in AI compute and drive long-term growth in its data-centre segment.

Kate Leaman, chief market analyst at AvaTrade, commented on Nvidia’s quarterly earnings: “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.”

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