The world’s most valuable company said it expected fiscal fourth-quarter sales of US$65 billion, plus or minus 2 percent, compared with analysts’ average estimate of US$61.66 billion, according to data compiled by LSEG.
The NVIDIA logo is displayed on a building in Taipei, Apr 16, 2025. (Photo: REUTERS/Ann Wang)
20 Nov 2025 05:21AM (Updated: 20 Nov 2025 06:04AM)
Nvidia forecast fourth-quarter revenue above Wall Street estimates on Wednesday (Nov 19), betting on booming demand for its AI chips from cloud providers against the backdrop of widespread concerns of an artificial-intelligence bubble.
The results from the AI chip leader mark a defining moment for Wall Street, as global markets look to the chip designer to determine whether investing billions of dollars in AI infrastructure expansion has resulted in towering valuations that potentially outpace fundamentals.
The world’s most valuable company said it expected fiscal fourth-quarter sales of US$65 billion, plus or minus 2 percent, compared with analysts’ average estimate of US$61.66 billion, according to data compiled by LSEG.
Shares of the AI market bellwether were up more than 4 percent in extended trading. Ahead of the results, doubts had pushed Nvidia shares down nearly 8 percent in November, after a 1,200 per cent surge in the past three years. The broader market has declined almost 3 percent this month.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” CEO Jensen Huang said in a statement. “The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”
Sales in the data-center segment, which accounts for a majority of Nvidia’s revenue, grew to US$51.2 billion in the quarter ended Oct 26. Analysts had expected sales of US$48.62 billion, according to LSEG data.
Still, analysts and investors widely expected the underlying demand for AI chips, which has powered Nvidia results since ChatGPT’s launch in late 2022, to remain strong.
Huang said last month the company has US$500 billion in bookings for its advanced chips through 2026.
Big Tech, among Nvidia’s largest customers, has doubled down on spending to expand AI data centers and snatch the most advanced, pricey chips as it commits to multi-billion, multi-gigawatt build outs.
Microsoft reported a record capital expenditure of nearly US$35 billion for its fiscal first quarter last month, with roughly half of it spent primarily on chips.
Nvidia said it expected adjusted gross margin of 75 percent, plus or minus 50 basis points in the fourth quarter, compared with market expectation of 74.5 percent.