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Nvidia’s Record Quarter and Lofty Outlook Fail to Hold Rally as Chip Stocks Reverse

Record guidance faced skepticism over circular financing, lofty valuations, rate risks.

Overview

  • Nvidia posted fiscal Q3 revenue of about $57 billion and net income near $31.9 billion, led by roughly $51.2 billion from its Data Center segment.
  • The company guided for around $65 billion in next‑quarter sales as CEO Jensen Huang said Blackwell demand is exceptional and cloud GPUs are sold out, rejecting talk of an AI bubble.
  • An initial pop in after‑hours and premarket trading faded on Thursday, with Nvidia shares closing down about 3% and the Philadelphia Semiconductor Index falling roughly 4.8%.
  • Investors scrutinized large, circular financing arrangements tied to future chip purchases — including high‑profile commitments involving OpenAI and Anthropic — as they assessed durability of AI spending.
  • Given Nvidia’s roughly 7%–8% weight in the S&P 500, its results buoyed early sentiment before broader tech selling resumed, with rate expectations and valuation concerns pressing on the sector.