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Nvidia’s Blockbuster Results Collide With Selloff, Reviving Questions on AI Spending

Investor focus shifted to valuation, concentration and financing risks despite Nvidia’s blowout quarter.

Overview

  • The chipmaker posted record quarterly revenue of $57.01 billion, including $51.2 billion from data centers, guided roughly $65 billion for the current quarter and cited about $500 billion in bookings into 2026, with Blackwell GPUs described as sold out.
  • An early relief rally flipped into a sharp reversal that wiped out roughly $2.7 trillion in market value, with Nvidia shares giving back gains and semiconductor benchmarks sliding as volatility spiked.
  • Analysts highlighted structural worries including circular capital flows between tech giants and AI firms, a jump to $26 billion in rent‑back chip contracts, rising revenue concentration with four customers at 61% of sales and capacity constraints across energy and memory.
  • Nvidia’s print briefly lifted risk assets such as Bitcoin above $90,000 and buoyed Asian tech at the open before broader tech and chip names weakened in U.S. and global trading.
  • With high‑end sales to China restricted, the Commerce Department approved exports of up to 35,000 Blackwell chips to companies in Saudi Arabia and the UAE, a shipment estimated at well over $1 billion.