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Nvidia’s Blowout Quarter Fails to Hold Markets as AI-Driven Tech Selloff Accelerates

Investors refocused on stretched AI valuations, flipping early gains into global tech losses.

Overview

  • Nvidia reported third-quarter net profit up 65% to $31.9 billion on revenue of $57.0 billion, guiding to roughly 65% revenue growth and a 74.8%–75.0% gross margin next quarter.
  • CEO Jensen Huang called Blackwell sales exceptional with cloud GPUs sold out, saying demand for computing capacity continues to accelerate.
  • CFO Colette Kress projected about $500 billion of revenue from Blackwell and Rubin across 2025–2026, while China contributed only $50 million last quarter with none expected next quarter due to export controls.
  • An early global rally reversed sharply as the Nasdaq fell 2.15% and Nvidia closed down 3.15%, triggering broad tech declines that extended into Asian and European sessions on Friday.
  • Analysts flagged overvaluation risks and questions about financing massive AI buildouts, with volatility elevated, the MSCI World tracking its worst week since April, and bitcoin sliding to near $86,000.