Nvidia’s AI Surge Defies Bubble Concerns with Record Performance

Recent anxieties about a potential artificial intelligence bubble bursting have been looming over the technology sector. However, Nvidia's latest quarterly report, released Wednesday evening, decisively dispelled these concerns. The company revealed demand for its new chip generation that, according to CEO Jensen Huang, is "shattering all expectations." For investors, the central question is no longer about the hype's expiration but rather the potential for continued growth in this rally.

Nvidia didn't just meet expectations; it delivered a powerful demonstration of market dominance. Revenue soared to a record-breaking $57.0 billion, representing a massive 62% year-over-year surge that comfortably surpassed Wall Street's consensus estimates.

The primary engine for this performance remains the Data Center division. This segment alone generated $51.2 billion in revenue, marking a 66% increase. These figures send a clear signal: major technology giants are not slowing their investments in AI infrastructure but are, in fact, accelerating them.

Key financial highlights include:

• Revenue: $57.0 billion (Expected: $55.4 billion)
• Earnings Per Share: $1.30 (Expected: $1.26)
• Data Center Revenue: $51.2 billion (+66% year-over-year)
• Q4 Outlook: ~$65.0 billion (Expected: $62.38 billion)

Unprecedented Demand for Blackwell Architecture

While past performance is impressive, the forward guidance captivated the market. The forecast for the fourth fiscal quarter, projecting approximately $65 billion in revenue, energized investors. CEO Jensen Huang highlighted a significant supply-demand imbalance, noting that sales for the new "Blackwell" architecture are "off the charts" and that its cloud GPUs are entirely sold out. This indicates a transition to the next-generation chip that is progressing more rapidly than many analysts had anticipated. Strategic collaborations, including new agreements with OpenAI and Microsoft to optimize AI data centers, further cement Nvidia's entrenched position within the ecosystem.

Should investors sell immediately? Or is it worth buying Nvidia?

Market Analysts Revise Targets Upward

The response from financial experts was swift and overwhelmingly positive. Research firms issued a wave of commendations, praising the "positive cycle" of AI adoption.

• Wedbush increased its price target to $230.
• DA Davidson reaffirmed its Buy rating with a $250 target.
• Melius Research now sees the stock reaching $320.

The consensus is clear: fears that massive hardware expenditures by tech corporations would fail to yield returns have been countered by the accelerated growth in the data center business.

Charting a Bullish Trajectory

For Nvidia's stock, this report served as a catalyst for a significant rebound. After a hesitant start to November, the shares are now trading firmly at 169.72 euros. With a year-to-date advance of nearly 26% and the recapture of key technical levels, the path of least resistance appears to be upward once more.

Given that the next-generation "Rubin" platform is already slated for 2026 and demand is expected to outstrip supply for the foreseeable future, Nvidia is positioned to finish 2025 on a powerful note.