Nvidia has crushed Wall Street expectations with blockbuster quarterly earnings, sparking a global stock market rally and easing fears of an artificial intelligence bubble. The chip giant reported third-quarter revenues of $57 billion—beating forecasts of $55.2 billion—and projected fourth-quarter revenues of $65 billion, far above the expected $61.9 billion. The results sent Nvidia shares surging 5% in after-hours trading and lifted markets worldwide on Thursday, offering relief after weeks of investor anxiety over sky-high AI valuations.
Global markets responded with vigor. Japan's Nikkei 225 jumped 2.7%, while European stocks opened 1.2% higher. The FTSE 100 rose 0.6%, marking its first positive session in over a week. US futures pointed to strong gains, with the Nasdaq projected to climb 1.8% and the S&P 500 up 1.2%.
Nvidia's net income hit $31.9 billion, a 65% year-on-year increase. The company's data-center sales—critical for AI training—reached $51.2 billion, surpassing expectations of $49 billion. The results underscore Nvidia's dominance in the AI chip market, with its valuation now standing at $4.5 trillion.
Dismissing bubble fears
Jensen Huang, Nvidia's founder and CEO, directly addressed growing concerns about an AI bubble. «There has been a lot of talk about an AI bubble. From our vantage point we see something very different,» he told analysts late on Wednesday.
Huang emphasized the expanding AI ecosystem: «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.»
Ben Barringer, head of technology research at Quilter Cheviot, called the results «just what the market wanted after a nervous couple of weeks.» He added: «Nvidia has done well to assuage any fears that it was beginning to slow its growth and as such the rest of the market will respond accordingly.»
Matt Britzman, analyst at Hargreaves Lansdown, noted: «Nvidia bears the weight of the world, but like Atlas, it's standing firm under that towering mountain of expectations. Third quarter results delivered the goods and then some, a 4% beat on the top and bottom line came with a side of more good news in the form of a monster $65 billion revenue guide for the fourth quarter.»
Fed rate outlook and jobs data
The market rally comes as investors await a delayed US jobs report for September, due Thursday afternoon. Economists expect 75,000 payrolls and a steady 4.3% unemployment rate. A weak reading could influence the Federal Reserve toward a December rate cut, though recent signals suggest skepticism among policymakers.
Minutes from the Federal Reserve's October meeting, released overnight, showed "many" officials leaning against a December rate cut. Traders now price the odds of a December cut at just 33%.
Kyle Rodda, senior financial market analyst at Capital.com, cautioned that two factors still loom: «The artificial intelligence overinvestment and overvaluation story» and «the Fed rate outlook story.»
JD Sports issues profit warning
In other business news, UK retailer JD Sports Fashion warned that annual profits for 2025/26 would likely fall at the lower end of forecasts, between £853 million and £888 million—down from £923 million a year earlier.
Chief executive Regis Schultz cited «recent weak macro and consumer indicators in our key markets,» including rising unemployment and volatile consumer sentiment. The company also blamed unseasonably warm autumn weather for dampening clothing sales. UK like-for-like sales fell 3.3% in the third quarter ending November 1.
Note: This article was created with Artificial Intelligence (AI).
