NVIDIA hits record revenue amid fears of an AI bubble

Amid speculation that tech stocks are in an AI bubble, NVIDIA has released its financial results for the third quarter of fiscal year 2026, ending October 26, 2025. The company recorded record financial results driven in large part by AI and Data Center products. Its headline figure was that it achieved record revenue of $57 billion, representing a 22% increase quarter-over-quarter, and a 62% increase year-over-year.

It also saw record Data Center revenue of $51.2 billion, up 25% Q/Q and 66% Y/Y. Further results include gross margin (GAAP/Non-GAAP) of 73.4% and 73.6%, respectively and diluted earnings per share (GAAP/Non-GAAP) both coming in at $1.30.

NVIDIA CEO Jensen Huang said that Blackwell sales are “off the charts” and cloud GPUs are sold out. He also claimed that the company has entered “the virtuous cycle of AI.”

During the quarter, Data Center revenue hit $51.2 billion (up 25% Q/Q, up 66% Y/Y), Gaming hit $4.3 billion (down 1% Q/Q, up 30% Y/Y), Professional Visualization hit $760 million (up 26% Q/Q, up 56% Y/Y), and Automotive and Robotics hit $592 million (up 1% Q/Q, up 32% Y/Y).

Looking forward to the next quarter, the company is aiming to hit $65 billion, plus or minus 2%. For Gross Margin (GAAP/Non-GAAP), it is aiming for 74.8% and 75%, plus or minus 50 basis points. NVIDIA is targeting Operating Expenses (GAAP/Non-GAAP) of $6.7 billion and $5 billion respectively, and a Tax Rate of 17%, plus or minus 1%.

NVIDIA closed at $186.52 on Wednesday but in after-hours trading, it has risen to $196 at the time of writing. This is good for the company because at the start of the month it began to fall quite sharply. Its fall was not helped much by talk of AI being in a bubble. Only time will tell if it really is in a bubble or if spectators are getting overly spooked.

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Posted Friday 21 November 2025 at 3:48 am AEST (my time).

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