FiscalFusion

Nvidia’s sales of the computing chips powering the artificial intelligence craze surged past stock market expectations, providing relief to investors concerned that the AI boom might lead to a Big Tech bust. The company’s fiscal third-quarter results for August-October showed earnings of $31.9 billion, or $1.30 per share, up 65% from last year, and revenue climbed 62% to $57 billion, exceeding analysts’ forecasts of $1.26 per share on $54.9 billion in revenue. Nvidia also projected revenue of about $65 billion for the November-January quarter, nearly $3 billion above expectations, reflecting strong demand for its AI chips.

CEO Jensen Huang described incoming orders for the top-of-the-line Blackwell chip as “off the charts,” while CFO Collette Kress predicted the company will sell about $500 billion in AI chips within 24 months and anticipated trillions more in AI spending by the end of the decade. The upbeat results and commentary underscore Nvidia’s pivotal role in the AI-driven economy and helped push its stock price up more than 5% in extended trading, potentially adding $230 billion in stockholder wealth. The company has leveraged its position to forge ties with President Donald Trump, even amid trade restrictions in China, with AI investments supporting U.S.

economic growth and data center development. Nvidia’s success has also benefited other Big Tech giants—Apple, Microsoft, Alphabet, and Amazon—whose market values range from $2 trillion to $4 trillion, as they invest in AI factories and related services. Analysts view Nvidia as central to the AI-driven economic transformation, countering recent concerns about overhyped expectations and a potential market downturn..