Wed Nov 19 21:20:00 UTC 2025: Nvidia Soars Past Expectations, But Future AI Chip Demand Remains in Focus

[CITY, STATE] – Nvidia (NVDA), the $5 trillion chip giant and leader in AI technology, reported blockbuster third-quarter earnings that handily exceeded Wall Street’s forecasts, sending its shares surging in after-market trading.

The company posted $1.30 in diluted earnings per share on $57.01 billion in total revenues, surpassing analyst expectations of $1.26 earnings per share on $54.9 billion in revenue. Data center revenue alone reached $51.2 billion, exceeding predictions of $49 billion. Sales are up 62% year-over-year. The company also projected fourth-quarter revenue of around $65 billion, significantly above the $61 billion consensus estimate.

“Blackwell sales are off the charts, and cloud GPUs are sold out,” declared Nvidia CEO Jensen Huang, highlighting the insatiable demand for the company’s AI-focused chips. “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.”

The strong results appear to quell some concerns about the sustainability of high valuations within the AI sector. “This answers a lot of questions about the state of the AI revolution, and the verdict is simple: it is nowhere near its peak,” stated Thomas Monteiro, senior analyst at Investing.com.

Despite the impressive performance, analysts are keenly awaiting further guidance on the long-term outlook for AI chip demand. While acknowledging Nvidia’s dominance in the market, David Meier of The Motley Fool emphasized that “the valuable information is more likely to come from the commentary about where management sees its markets headed.”

The earnings come after a somewhat shaky November for Nvidia shares, down 7.9%, with prominent investors like Peter Thiel’s Thiel Macro and Softbank liquidating their holdings in the company. Some experts question the long-term sustainability of Nvidia’s rapid growth.

“I do not believe that Nvidia’s growth is sustainable long-term,” cautioned Forrester’s Alvin Nguyen. “AI demand is unprecedented, but if there is a market correction due to supply meeting demand or a slowdown in the pace of innovation/businesses getting used to the pace, I expect that the continued growth in Nvidia share value will slow down.”

The upcoming earnings call is expected to provide crucial insights into Nvidia’s strategy for maintaining its market leadership and navigating potential challenges in the rapidly evolving AI landscape.

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