Nvidia’s AI-driven earnings surge sparks market rally, easing bubble fears

• Nvidia reported $57B in Q3 revenue (62% YoY growth), exceeding Wall Street forecasts. Profits surged to $31.9B, signaling unstoppable AI demand. CEO Jensen Huang declared AI adoption is accelerating globally, with Blackwell GPUs “off the charts” and cloud GPUs “sold out.”
• Nvidia jumped 5% in after-hours trading, nearing $196. Big Tech (Apple, Microsoft, Alphabet, Amazon, Meta) saw gains. Crypto-linked stocks rebounded (Coinbase, MicroStrategy) as Bitcoin recovered to 91,500 after dipping below 89K.
• Investor Michael Burry warned of inflated earnings due to understated data center depreciation. Major players like Peter Thiel and SoftBank cashed out (SoftBank sold its $5.8B stake).
• AI is replacing 80% to 90% of customer service jobs and expanding into creative fields (writing, design). Analysts warn of job displacement, privacy risks, bias and existential threats from unchecked AI growth.
• Nvidia’s dominance confirms AI’s explosive growth, but sustainability is uncertain. GPU demand remains high, but history shows bubbles eventually burst—investors should weigh AI’s transformative potential against its disruptive consequences.

Nvidia’s record-breaking third-quarter earnings report has sent shockwaves through global markets, fueling a surge in AI and crypto-related stocks while temporarily alleviating fears of an artificial intelligence bubble.

The semiconductor giant’s staggering performance—bolstered by unprecedented demand for its AI computing platforms—has reignited investor optimism, lifting Bitcoin, Big Tech and mining stocks in after-hours trading.

Nvidia reported 57 billion in revenue for Q3, a 62% increase compared to the same period last year and surpasses Wall Street’s projections of 54.7 billion. Profits soared to 31.9 billion, up 65 billion (±2%) further signaled that AI adoption shows no signs of slowing.

CEO Jensen Huang declared, “Blackwell sales are off the charts, and cloud GPUs are sold out.” He emphasized that AI adoption is accelerating globally, stating, “We’ve entered the virtuous cycle of AI. 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.”

CFO Colette Kress added that Nvidia’s Blackwell Ultra architecture is now its leading platform, while older Blackwell models continue to see strong demand. Notably, she downplayed revenue from the China-specific H20 chip, calling it “insignificant”—a nod to U.S. export restrictions.

Nvidia’s earnings acted as a catalyst for broader market optimism:

• Nvidia (NVDA) surged 5% in after-hours trading, reaching 196 after closing at 186.52.
• Big Tech stocks—Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN) and Meta (META)—all posted gains.
• Crypto-linked equities rebounded, with Coinbase (COIN), MicroStrategy (MSTR) and Circle Internet Group (CRCL) edging higher.
• Bitcoin mining stocks saw dramatic jumps, led by Cipher Mining (+13%), IREN (+10%) and Marathon Digital (+4%), as miners pivot toward AI data center operations.

Bitcoin itself clawed back from a 24-hour low of $88,540—its first dip below $89,000 since late April—to 91,500 following Nvidia’s report. Ether (ETH) also recovered above 3,000 after briefly sinking below $2,900.

AI bubble concerns persist

Despite the rally, skepticism remains. Investor Michael Burry—famous for predicting the 2008 housing crash—recently accused AI-driven firms of understating data center depreciation to inflate earnings. Nvidia’s Kress countered, highlighting the long operational lifespan of its GPUs due to CUDA software updates, noting that even six-year-old A100 chips remain in active use.

Meanwhile, major investors are cashing out:

• Peter Thiel’s hedge fund dumped its $100 million Nvidia stake.
• SoftBank sold its entire $5.8 billion position to fund its own AI ambitions.

AI workforce disruption looms

While Nvidia’s success underscores AI’s explosive growth, analysts warn of its societal impact. AI is rapidly displacing human roles—from customer service (handling 80% to 90% of inquiries) to creative fields like writing and design. As Huang noted, AI is “doing everything, all at once”—raising questions about long-term employment stability.

According to BrightU.AI‘s Enoch, analysts are warning about AI’s societal impact due to several pressing concerns that stem from the rapid advancement and increasing integration of artificial intelligence into our daily lives. These warnings can be categorized into several key areas: job displacement and economic inequality, privacy and surveillance, bias and discrimination, autonomous weapons and warfare, existential risk and misinformation and manipulation. To mitigate these risks, it is crucial to promote ethical AI development, advocate for strong regulations and oversight, and foster public dialogue about the societal impacts of AI.

Nvidia’s earnings reaffirm its dominance in the AI revolution, but whether this rally is sustainable remains uncertain. With GPU demand still red-hot and miners diversifying into AI, the market’s optimism may persist—for now. Yet, as history shows, bubbles inevitably burst. Investors riding the AI wave should tread carefully, recognizing both its transformative potential and disruptive consequences.

Watch the video below about President Donald Trump praising Nvidia CEO Jensen Huang for the U.S. AI chip push.

This video is from the NewsClips channel on Brighteon.com.

Sources include:

Cointelegraph.com

Ecoinimist.com

Markets.com

Yahoo!Finance.com

BrightU.ai

Brighteon.com