NVIDIA's earnings report alleviates concerns about the AI bubble, CEO Jen-Hsun Huang: Everyone's way of working will change.

On November 19, 2025, NVIDIA released its third quarter financial report for fiscal 2026, with revenue of $57.006 billion, a year-over-year rise of 62%, and a net profit of $31.91 billion, both exceeding market expectations.

CEO Huang Renxun stated at the U.S.-Saudi Investment Forum that “AI will change the way everyone works” and discussed the disruptive impact of technology with Elon Musk. At the same time, NVIDIA provided a revenue guidance of $65 billion for the fourth fiscal quarter, driving the stock price up nearly 6% in after-hours trading, easing market concerns about an AI bubble.

NVIDIA's Earnings Report Exceeds Expectations: Blackwell Architecture Drives Rise Engine

As of the third fiscal quarter ending October 26, 2025, NVIDIA delivered an impressive report: revenue of $57.006 billion, a 62% increase from $35.082 billion in the same period last year, and a 22% rise from $46.743 billion in the previous quarter; net profit of $31.91 billion, a 65% year-over-year growth; non-GAAP earnings per share of $1.30, exceeding analysts' expectations of $1.25.

The performance rise was primarily driven by the data center business, which generated revenue of $51.2 billion, a year-on-year increase of 66%. Among this, the computing business (GPU sales) contributed $43 billion, while the networking business (GPU interconnection) had revenue of $8.2 billion. Jensen Huang emphasized in a statement that the demand for Blackwell architecture products far exceeded expectations, cloud GPUs are completely sold out, and the demand for AI computing is showing a compound acceleration rise.

The Impact of AI on Social Employment: The Disruptive Predictions of Huang Renxun and Musk

At the U.S. Saudi Investment Forum held before the financial report was released, NVIDIA CEO Jensen Huang and Tesla CEO Elon Musk discussed the impact of AI on stage. Huang stated, “AI will change the way everyone works — both Elon and I will be busier because of it.” He downplayed concerns about AI replacing jobs, pointing out that “you won't lose your job to AI, but you will be surpassed by those who know how to use AI well,” which is consistent with his remarks at the Milken Conference.

Musk made a more aggressive prediction: “In the future, work will become optional, just like exercise or video games.” These statements echo the research conclusions of JPMorgan: in the next 20 years, about 15% of jobs will be replaced by AI, but at the same time, it may create unknown new professions, potentially increasing global GDP by 7 trillion dollars.

NVIDIA Q3 Core Data FY 2026

• Total Revenue: 57.006 billion USD
• Net Profit: 31.91 billion USD
• Data Center Business Revenue: 51.2 billion USD (YoY +66%)
• Game and AI PC business revenue: $4.3 billion (year-on-year +30%)
• Gross Margin: 73.4%
• R&D expenses: 4.705 billion USD
• Next quarter revenue guidance: $65 billion ±2%

Ecological Expansion and Capital Allocation: The Positive Cycle Strategy of Chip Giants

NVIDIA is building an AI ecological moat through technological iteration and capital operations. In this quarter, the company deepened cooperation with ultra-large customers such as Microsoft, Amazon, Google, Oracle, and Meta, while advancing the 500 megawatt data center project in collaboration with Saudi Arabia. The xAI and Humain consortium, which uses NVIDIA chips, is committed to building the world's largest computing cluster.

In terms of capital allocation, $37 billion was returned to shareholders through share buybacks and dividends in the first nine months of the fiscal year 2026, with a remaining authorization of $62.2 billion. Chief Financial Officer Colette Kress revealed that the current best-selling product line has been upgraded to the Blackwell Ultra architecture, positioning the company at the core of the $3-4 trillion AI infrastructure market each year.

Market Reaction and Industry Impact: Concerns Over AI Bubble Temporarily Alleviated

NVIDIA's strong earnings report has become a turning point for market sentiment. After the earnings report was released, the after-hours stock price soared 5.7% to $197.6, driving the NASDAQ 100 index futures up 1.7% and the S&P 500 futures up 1.2%. The Asian market responded in sync, with the Nikkei 225 index surging 3.7%, the Korean Kospi index rising 2.5%, and Bitcoin rebounding above $92,000.

This performance alleviated recent concerns about an AI spending bubble, as the tech sector had experienced a significant correction due to high valuations and delayed rate cut expectations. Wall Street analysts believe that NVIDIA's guidance of $65 billion for the fourth quarter (higher than the market expectation of $61.66 billion) validates the sustainability of AI investments, but attention should be paid to customer concentration and geopolitical risks.

How will the popularization of AI reconstruct the logic of technology investment?

The deeper significance of Nvidia's financial report is that it confirms AI has moved from proof of concept to the stage of large-scale deployment. Companies are no longer debating “whether to adopt AI,” but are focusing on “how to optimize AI spending efficiency.” This shift encourages investors to move their attention from computing power suppliers (like Nvidia) to seeking leaders in vertical industry applications.

At the same time, the competition for computing power sovereignty among countries is intensifying. The United States and Saudi Arabia have reached an agreement on semiconductor procurement, while Nvidia is collaborating locally to build supercomputers. Geopolitics is becoming a key variable influencing the AI supply chain. For ordinary investors, it is important to be cautious of the disconnection between the valuation of some AI concept stocks and their performance delivery capabilities, prioritizing companies with real cash flow support.

FAQ

1. How long will the supply tightness of NVIDIA Blackwell architecture chips last?

Based on the $500 billion order backlog for 2025-2026, capacity constraints may continue until 2027, but foundries like TSMC are accelerating expansion.

2. When will the actual impact of AI on the job market become apparent?

JPMorgan predicts that 15% of jobs will be gradually replaced over the next 20 years, but the pace of impact on creative white-collar jobs and precision blue-collar jobs will differ.

3. How can ordinary investors participate in the AI wave?

Core hardware vendors like NVIDIA, cloud computing platforms, or vertical AI application companies can be deployed, but valuation risks should be noted.

4. Is the slowdown in Nvidia's gaming business rise a cause for concern?

Game revenue of 4.3 billion dollars still maintains a 30% year-on-year rise, while its proportion of total revenue has dropped to 7.5%, with strategic importance giving way to data centers.

5. What is the impact of US-Saudi cooperation on Nvidia's geopolitical risks?

Saudi orders enhance revenue diversity, but attention must be paid to changes in U.S. export controls that restrict technology transfer.