The company, post-market hours, reported third-quarter revenue of about $57 billion, outpacing its prior guidance
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ANN WANG
Chipmaker Nvidia shares surged 4 per cent in opening trade at ₹195.95 on Thursday on Nasdaq following a significant beat on revenue in its third quarter earnings above Wall Street expectations. CLSA maintained its high-conviction outperform rating on the stock, noting that the latest results underscore accelerating momentum in the global AI buildout.
The company, post-market hours, reported third-quarter revenue of about $57 billion, outpacing its prior guidance and representing its strongest beat in four quarters, according to CLSA’s analysis. Earnings per share came in at $1.30, also ahead of Wall Street expectations.
Nvidia raised its forecast for the current quarter to roughly $65 billion, with the top end of its guidance reaching $66.3 billion — well above analysts’ estimates and signalling year-over-year growth that is set to accelerate.
AI shines
On a call, Nvidia CEO Jensen Huang dismissed concerns when investors debated over a rapid surge in AI spending signalled a looming bubble, saying, “We see something very different.”
Market analysts argue that Nvidia’s latest quarter offers a compelling counterpoint to bubble concerns. Ross Maxwell, Global Strategy Lead at VT Markets, said the results “come as a timely relief to the markets,” adding that Nvidia’s guidance “helps reduce the uncertainty in the sector, as investors will feel more comfortable with exposure, knowing that Nvidia sees sustained growth ahead.”
He noted that Nvidia’s performance reinforces the view that demand for AI infrastructure remains solid, even as valuations across the sector have come under scrutiny.
CLSA analysts echoed that sentiment, writing that the company’s Q4 forecast signals a “steady, if not accelerating AI build.” The brokerage pointed to sharply rising token consumption, a persistent global shortage of AI compute capacity, and Nvidia’s dominant position with roughly 80 per cent share of the GPU market as key drivers supporting its bullish stance on the stock
The report also highlights strong momentum across Nvidia’s core business lines. GPU sales rose 56 per cent year-on-year, networking revenue climbed 162 per cent, and data-centre revenue expanded 66 per cent—slightly outpacing overall company growth
Gross margin improved sequentially by 100 basis points and is expected to rise further in the current quarter.
Word of caution
Still, analysts caution that sentiment could shift if Nvidia’s growth trajectory shows any signs of stalling. “If future quarters don’t continue to accelerate, sentiment can reverse quickly,” Maxwell noted. While Nvidia’s results bolster confidence in the broader AI ecosystem, he said, not all companies in the sector will be able to replicate its execution, especially those with weaker competitive positions.
For now, Nvidia’s record-setting run appears firmly intact. With demand still far outstripping supply and customers racing to deploy ever-larger AI models, the company’s latest quarter reinforces why investors continue to treat it as the bellwether for the global AI economy.
Published on November 20, 2025
