Despite AI bubble warnings, Nvidia shocks with $57 billion in revenue

(Dan Tri) - Nvidia continues to prove its position as the "chip king" when it announced its third quarter financial report that exceeded all forecasts. Revenue exploded, profits increased by 65%, dispelling doubts about the cooling demand for AI.

Wall Street investors had a sleepless night waiting for Nvidia's "report card". Not disappointing expectations, this semiconductor giant once again made waves in the market when announcing its business results for the third quarter of the 2025 financial year.

Despite concerns about lofty valuations and a looming AI bubble, Nvidia's $57 billion in revenue sends a strong message: The AI ​​era is just beginning.

Money printing machine called "data center"

Nvidia announced numbers that spoke volumes at the end of the third quarter of fiscal 2025, shattering the concerns of even the most cautious analysts. Specifically, revenue reached $57.01 billion, far exceeding the $55.2 billion forecast by experts and far surpassing the $35.1 billion figure from the same period last year.

Notably, the company's net profit soared 65% to $31.9 billion. To put this scale in perspective, among the Big Tech giants, only Alphabet (Google's parent company) made more money than Nvidia in the same period.

Jensen Huang, CEO of Nvidia, has bet on chips for artificial intelligence, turning his company into a "giant" in Silicon Valley (Photo: The New York Times).

The main driver for this growth engine is still the Data Center segment, bringing in $51.2 billion, exceeding the forecast of $49.3 billion. This affirms Nvidia's unique position when holding about 90% of the global AI chip market - where technology corporations are pouring trillions of dollars into building infrastructure.

CEO Jensen Huang, who is known as the "godfather of AI", could not hide his confidence: "Blackwell sales are beyond expectations and cloud GPUs are sold out. We are entering a positive cycle of AI".

Immediately after this news, Nvidia shares increased by more than 5% in after-hours trading, leading to green for the entire semiconductor ecosystem such as AMD, Micron and major partners such as TSMC.

The brightest spot in the report is not just the past numbers, but the future prospects with the new generation of chips: Blackwell.

Nvidia CFO Colette Kress said Blackwell Ultra is now the flagship architecture and demand for this product line is "huge". Even chip orders for cloud platforms have "sold out" early. This has helped Nvidia boldly forecast fourth-quarter revenue of about $65 billion, higher than the $62 billion expected by Wall Street experts.

One interesting detail that investors are interested in is the Chinese market. Despite trade barriers and export restrictions, Ms. Kress affirmed that revenue from H20 chips (a line of chips designed specifically for China) currently accounts for a "negligible" proportion. This shows that Nvidia has reduced its dependence on a single market and found huge growth potential in other regions.

AI bubble or inevitable shift?

Despite its dreamy balance sheet and a market capitalization that hit $5 trillion last month, Nvidia still faces skeptical looks from seasoned investors.

Michael Burry, the legendary investor best known for predicting the 2008 financial crisis, recently warned that some tech companies are “inflating” profits by understating depreciation on equipment. He said AI infrastructure may not be as sustainable as it appears.

Goldman Sachs also questioned the “circular cash flow” model. Nvidia invests in AI startups (like the $100 billion commitment to OpenAI or the $10 billion commitment to Anthropic), and those companies use that money to buy Nvidia chips. An estimated 15% of Nvidia’s revenue next year could come from these types of transactions.

Despite the warnings, Nvidia’s ship is still sailing at breakneck speed. Jensen Huang believes the company’s revenue could hit $500 billion by the end of next year. He dismisses the notion of an “AI bubble” and argues that the world is at the beginning of three major transitions: post-Moore’s Law, generative AI, and physical AI.

Commenting on this report, a senior analyst from Wall Street commented:

"Nvidia isn't just selling chips, it's selling tickets to the next industrial revolution. While valuations may be a bit hot in the short term and geopolitical risks remain, as long as big players like Meta, Microsoft, and Google continue to compete in the AI ​​arms race, Nvidia will be the ultimate winner. Today's $57 billion figure may just be the floor for the coming quarters."

Source: https://dantri.com.vn/kinh-doanh/bat-chap-canh-bao-bong-bong-ai-nvidia-gay-soc-voi-doanh-thu-57-ty-usd-20251120110652995.htm