By Mark Hartley
Publication Date: 2025-11-25 08:35:00
Last week (19 November), Nvidia’s (NASDAQ:NVDA) much-anticipated Q3 earnings briefly quelled fears of an imminent stock market crash. Sales of its highly sought-after Blackwell GPU chips were “off the charts“, according to CEO Jensen Huang, while other cloud GPUs had sold out completely.
However, during the announcement, CFO Colette Kress noted geopolitical issues affecting sales of its H20 chip in China. Despite being granted the necessary licenses early this year, the company only recorded $50m in sales to the country.
While no Chinese company competes with Nvidia’s leading products, some match or exceed its export-restricted H20 chips. Huawei and Cambricon are two companies that pose a significant risk to its sales in this critical region.
Stellar results
The massive sales boost delivered a 62% year-on-year (yoy) revenue increase to $57bn, beating estimates of $54.9bn. Similarly, profit rose 65% yoy to $31.9bn. Helping to further quell fears of an AI bubble-driven market crash, the company provided Q4 guidance of $65bn — ahead of Wall Street’s anticipated $62.1bn.
According to analysts at Deutsche Bank, the results “have entirely transformed market sentiment and postponed any bubble concerns for the time being“. But while the so-called ‘AI trade’ may still be promising, the market is yet to make a significant recovery.
The brief boost last Thursday quickly tapered off, and the S&P 500 still ended the day down. So…
