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Nvidia’s Blowout Quarter Collides With AI Valuation Fears as Markets Whipsaw

Fresh doubts about the sustainability of massive AI spending overshadow Nvidia’s strong guidance.

Overview

  • Nvidia reported third-quarter net profit of $31.9 billion on revenue of $57.0 billion, rising 65% and 62% year over year.
  • The company guided to roughly 65% revenue growth for the current quarter with a gross margin around 74.8% to 75.0%.
  • CEO Jensen Huang said demand is accelerating, calling Blackwell sales exceptional and cloud GPUs sold out, while CFO Colette Kress outlined about $500 billion in 2025–2026 processor revenue.
  • China contributed roughly $50 million in the quarter and is expected to contribute nothing next quarter because of U.S. export restrictions.
  • Markets swung sharply: early rallies in Asia and Europe reversed into a U.S. tech selloff that left the Nasdaq down 2.15% and Nvidia off 3.15% Thursday, Asian tech fell Friday, and a late rebound on Fed comments still left the week weak and crypto sliding.