In a powerful demonstration of the artificial intelligence sector's relentless growth, chipmaking titan Nvidia has delivered another set of staggering quarterly results, comfortably surpassing analyst forecasts and calming recent nerves about a potential AI bubble.
Blockbuster Results Defy Expectations
The company's performance for the three months ending 26 October 2025 sent its shares climbing 3.7 per cent in after-hours trading. Nvidia reported earnings of $1.30 (£1.04) per share, beating the anticipated $1.26, as its revenue witnessed a massive 62 per cent year-on-year surge to reach $57.01bn. This figure handily exceeded the $55.19bn that Wall Street analysts had projected.
Once again, the engine of this remarkable growth was Nvidia's data-centre division, the cornerstone of global AI infrastructure investment. Revenue for this unit skyrocketed 66 per cent to an impressive $51.2bn, overshooting expectations of $49.34bn. In a slight contrast, the gaming division also saw healthy growth, with revenue rising 30 per cent to $4.3bn, though this was just below market consensus.
Leadership and Market Reaction
Nvidia's founder and chief executive, Jensen Huang, left no room for doubt about the current market climate, stating that demand remains "off the charts". He elaborated, "Compute demand keeps accelerating and compounding across training and inference – each growing exponentially. We’ve entered the virtuous cycle of AI."
The optimistic report acted as a rising tide, lifting other semiconductor stocks broadly. Companies like AMD, Intel, and Broadcom also experienced positive momentum in the wake of the announcement. This was a crucial test for the sector, which had seen a recent pullback in AI-linked stocks, prompting questions over whether it was a healthy market reset or the first sign of a bursting bubble.
Confident Guidance Amidst Cautious Optimism
Nvidia's forward-looking guidance injected fresh confidence into the market. The firm projected fourth-quarter revenue of $65bn, plus or minus two per cent, a figure far above the $61.98bn analysts were expecting.
Analysts were broadly positive in their assessment. Dan Albano from Tech Cache affirmed Nvidia's position as the "kingpin of AI", while Matt Britzman of Hargreaves Lansdown noted the company continues to carry "the weight of the world" while standing firm. However, a note of caution was sounded by Morningstar's Kenneth Lamont, who pointed to the unpredictable nature of AI adoption and warned that today's market leaders are rarely permanent.
In a final note to shareholders, Nvidia also declared a quarterly dividend of $0.01 per share, payable on 26 December.
