By Clare Duffy
Publication Date: 2025-11-22 08:00:00
New York
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Concerns about an AI bubble have been simmering for at least a year and a half. Nvidia’s incredibly strong earnings this past week tried to put those fears to bed. It may not have been enough.
Nvidia on Wednesday posted sales and profits up more than 60% year-on-year, stronger than Wall Street had projected. CEO Jensen Huang said “sales are off the charts.” And the company expects fourth quarter revenue of around $65 billion, once again ahead of Wall Street’s projections.
Nvidia executives said these results, along with growth from other major AI players and the billions being poured into AI infrastructure, indicate that fears of an AI bubble are overblown.
“There’s been a lot of talk about an AI bubble,” Huang said on a call with analysts Wednesday. “From our vantage point, we see something very different.”
Some Wall Street analysts agree. But the wider market is not yet convinced: After briefly ticking up on Thursday morning following Nvidia’s report, the chipmaker’s shares (NVDA) dipped back into the red. They closed Friday down 1%, although the stock remains up 29% from the start of this year.
In other words, Nvidia answered a lot of questions about where the industry stands right now, but it may take more to shift the overall AI narrative.
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