Business

Nvidia’s latest earnings spark debate over AI bubble as shares remain volatile

Wednesday, 19 November 2025 10:42PM UTC

Despite record revenues and strong growth forecasts, Nvidia's recent financial results have intensified discussions about the sustainability of the AI market bubble amid mounting investor scepticism and ongoing volatility.

Nvidia's shares edged higher following the release of its latest financial results, signaling a continued surge in demand for its artificial intelligence (AI) technology and easing some investor concerns about an imminent AI stock market bubble burst. The company, widely recognised as a pioneer in AI microchips, reported record revenues of around £44 billion in the third quarter, marking a 62 per cent increase year-on-year. It further forecasted robust fourth-quarter sales of approximately £50 billion, surpassing Wall Street expectations.

This substantial growth was achieved despite recent market volatility, where Nvidia's shares had declined about 10 per cent in three weeks prior to the earnings announcement, wiping out some $500 billion in market value. The results thus provided a critical moment of validation for investors debating whether the AI-driven market hype was sustainable or overheated. Following the report, Nvidia shares briefly rose over 4 per cent before some easing, with analysts cautioning that volatility is likely to continue amid ongoing uncertainty.

Nvidia’s dominance in the AI sector is underscored by its status as the world’s first $5 trillion company, a milestone reached last month. However, recent months have seen notable shareholders such as Softbank and Peter Thiel divest their entire holdings in Nvidia, reflecting a degree of scepticism. Moreover, Michael Burry, famed for predicting the 2008 housing crash, disclosed a significant bet on the stock’s decline, injecting further tension into market sentiment. Senior figures from major banks like Goldman Sachs and JP Morgan have also warned of a probable sharp market correction within the next couple of years, potentially spurred by an AI bubble collapse. Alphabet CEO Sundar Pichai drew parallels to the dotcom boom and bust, warning that “AI is both rational and contains elements of irrationality,” suggesting a turbulent phase ahead for the sector.

Despite these concerns, Nvidia’s business fundamentals remain strong. The company’s third-quarter revenue of $35.1 billion (approximately £44 billion) represented a 94 per cent increase from the previous year, led by its Data Center segment, which saw a 112 per cent year-on-year rise to $30.8 billion. CEO Jensen Huang emphasised the global shift towards accelerated and generative AI computing, driven by demand for Nvidia’s advanced Hopper and upcoming Blackwell architectures. These innovations underpin Nvidia’s integrated approach, combining chips, software, and networking, which experts say sets the company apart amid emerging competition seeking to offer alternatives.

Industry analysts highlighted Nvidia’s impressive performance and market positioning. Matt Britzman, senior equity analyst at Hargreaves Lansdown, likened Nvidia to the mythological figure Atlas, bearing heavy expectations yet delivering outstanding results. He noted the company's vast backlog of orders and the challenge competitors face in matching Nvidia’s scale and integration, reinforcing its competitive moat. While pockets of AI are experiencing valuation corrections, Nvidia’s growth and valuation appear more justified by strong earnings momentum.

Looking forward, Nvidia is poised for further fluctuations, with options data indicating a potential $320 billion swing in market value following earnings, the largest such move in its history. This reflects investor anticipation about the AI sector’s trajectory and Nvidia’s central role within it. The company also anticipates continued demand growth, with fourth-quarter revenues forecast to approach $39.3 billion, driven by high demand for Blackwell AI chips, and a predicted $43 billion revenue in the next fiscal quarter.

Nvidia’s involvement in significant AI infrastructure projects, such as the $500 billion Stargate joint venture, further cements its leadership position. While rising geopolitical tensions and prospective trade tariffs present risks, Nvidia remains optimistic, monitoring developments and expecting to comply with regulatory changes.

In summary, Nvidia’s latest financial results highlight its commanding position at the heart of the AI revolution. Although market fears of a bubble persist, the company’s robust revenue growth, technology leadership, and integrated solutions continue to underpin investor confidence, at least for now.

📌 Reference Map:

^[1] (Daily Mail) - Paragraphs 1, 2, 3, 4, 6, 7, 8, 9
^[2] (Reuters) - Paragraph 5
^[3] (Nvidia Q3 2024 Results) - Paragraph 6
^[4] (Nvidia Q3 2025 Results) - Paragraph 6
^[6] (Nvidia Q4 2025 Results) - Paragraph 7
^[7] (AP News) - Paragraphs 7, 8

Source: Noah Wire Services

More on this

https://www.dailymail.co.uk/money/markets/article-15307057/Record-breaking-Nvidia-defies-AI-bubble-gloom-Shares-soar-4-latest-update.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 - Please view link - unable to able to access data
https://www.reuters.com/business/nvidia-set-320-billion-price-swing-after-earnings-options-indicate-2025-11-18/ - Nvidia is poised for a potential $320 billion market value swing following its upcoming earnings report, the largest post-earnings move in its history, driven by heightened investor anticipation around the direction of the artificial intelligence (AI) industry. Options data from ORATS suggests a 7% move in either direction for the stock, which, at Nvidia’s current $4.6 trillion valuation, would surpass the $276 billion record set in February 2024. The company has become central to the AI investment narrative due to its dominance in graphics processing units used for AI tasks like training large language models.
https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-third-quarter-fiscal-2024 - NVIDIA reported record revenue of $18.12 billion for the third quarter of fiscal 2024, marking a 206% increase from the previous year and a 34% rise from the previous quarter. The data center segment led this growth with a 279% year-over-year increase, reaching $14.51 billion. CEO Jensen Huang highlighted the broad industry transition to accelerated computing and generative AI as key drivers. The company also announced a quarterly cash dividend of $0.04 per share, payable on December 28, 2023.
https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-third-quarter-fiscal-2025/ - NVIDIA reported record quarterly revenue of $35.1 billion for the third quarter of fiscal 2025, up 94% from the previous year and 17% from the previous quarter. Data Center revenue reached $30.8 billion, marking a 112% year-over-year increase. CEO Jensen Huang emphasized the global shift towards NVIDIA computing, driven by demand for Hopper and anticipation for Blackwell. The company also announced a quarterly cash dividend of $0.01 per share, payable on December 27, 2024.
https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-fourth-quarter-and-fiscal-2024 - NVIDIA reported record quarterly revenue of $22.1 billion for the fourth quarter of fiscal 2024, a 265% increase from the previous year and a 22% rise from the previous quarter. Data Center revenue reached $18.4 billion, up 409% year-over-year. CEO Jensen Huang highlighted the tipping point of accelerated computing and generative AI, with demand surging worldwide across industries. The company also announced a quarterly cash dividend of $4.93 per share, payable on February 21, 2024.
https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-fourth-quarter-and-fiscal-2025 - NVIDIA reported record quarterly revenue of $39.3 billion for the fourth quarter of fiscal 2025, up 78% from the previous year and 12% from the previous quarter. Data Center revenue reached $35.6 billion, marking a 93% year-over-year increase. CEO Jensen Huang highlighted the massive-scale production of Blackwell AI supercomputers and the rapid advancement of AI technologies. The company also announced a quarterly cash dividend of $0.01 per share, payable on April 2, 2025.
https://apnews.com/article/f72da2deff83510987a0017e61eac335 - Nvidia reported a significant increase in its fourth-quarter sales due to high demand for its Blackwell chips, which are used in artificial intelligence systems. The company's revenue reached $39.3 billion, a 12% rise from the previous quarter and a 78% increase from the previous year. Nvidia's net income for the quarter was $22.06 billion, surpassing analysts' predictions. Data center sales, a major contributor to Nvidia's revenues, saw a remarkable 93% growth compared to the previous year, accounting for $35.6 billion of the revenue. Nvidia's involvement in the Stargate project, a joint venture to invest $500 billion in AI infrastructure, is expected to further drive growth. The company's forecast for the first quarter of fiscal 2026 anticipates continued revenue growth, predicting around $43 billion. Nvidia's market value has surged, making it the second-largest company on Wall Street, valued at over $3 trillion. Despite the success, Nvidia faces uncertainties related to potential tariffs from the Trump administration. The company is closely monitoring developments and plans to comply with any new regulations.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative references Nvidia's Q3 2025 financial results, which were announced on November 19, 2025. The earliest known publication date of similar content is November 20, 2024, when Nvidia reported Q3 2024 earnings. The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The narrative also references a press release, which typically warrants a high freshness score. However, the inclusion of recycled content and the timing of the publication suggest a moderate freshness score. ([nvidianews.nvidia.com](https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-third-quarter-fiscal-2024?utm_source=openai))

Quotes check

Score: 9

Notes: The narrative includes direct quotes from Nvidia CEO Jensen Huang and other industry analysts. A search for the earliest known usage of these quotes indicates that they were first used in the November 19, 2025 press release. No identical quotes appear in earlier material, suggesting that the quotes are original to this report.

Source reliability

Score: 7

Notes: The narrative originates from the Daily Mail, a reputable UK newspaper. However, the report includes content from other sources, such as Reuters and Nvidia's official press releases. The inclusion of content from multiple sources may affect the overall reliability of the narrative.

Plausability check

Score: 8

Notes: The narrative presents plausible claims about Nvidia's financial performance and market position. The figures and statements align with information from Nvidia's official press releases and reputable news outlets. However, the inclusion of recycled content and the timing of the publication suggest a moderate level of scrutiny.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents plausible claims about Nvidia's financial performance and market position, with original quotes from CEO Jensen Huang. However, the inclusion of recycled content and the timing of the publication suggest a moderate level of scrutiny. The source reliability is affected by the inclusion of content from multiple sources. Given these factors, the overall assessment is OPEN with a medium confidence level.

Nvidia
AI
Market volatility