Nvidia earnings: Wall Street sighs with relief after AI wave doesn’t crash

A picture


Markets expectations around Wednesday’s quarterly earnings report by the most valuable publicly traded company in the world had risen to a fever pitch.Anxiety over billions in investment in artificial intelligence pervaded, in part because the US has been starved of reliable economic data by the recent government shutdown.Investors hoped that both questions would be in part answered by Nvidia’s earnings and by a jobs report due on Thursday morning.“This is a ‘So goes Nvidia, so goes the market’ kind of report,” Scott Martin, chief investment officer at Kingsview Wealth Management, told Bloomberg in a concise summary of market sentiment.The prospect of a market mood swing had built in advance of the earnings call, with options markets anticipating Nvidia’s shares could move 6%, or $280bn in value, up or down.

Julian Emanuel, Evercore ISI’s chief equities strategist, told the Financial Times that “angst around ‘peak AI’ has been palpable”.The anxiety has only been heightened by signs that some AI players, including Palantir’s Peter Thiel, Japanese investor Masayoshi Son of SoftBank have recently sold off multi-billion positions in Nvidia if only (in the case of SoftBank) to place those funds in OpenAI.Michael Burry, who became a legend on Wall Street for taking a short position ahead of the 2008 financial crisis, announced that he was shorting Nvidia and Palantir stock – and warned of an AI bubble – before abruptly winding down his investment company, Scion Asset Management.Analysts had expected the chip behemoth to show more than 50% growth in both net income and revenue in its fiscal third quarter as the tech giants – Microsoft, Amazon, Alphabet and Meta – that represent more than 40% of Nvidia’s sales continue to pour billions into the chipmaker.The company reported growth beyond even those lofty expectations.

Nvidia reported $57.01bn in total revenues, beating investor expectations of $54.9bn in revenue.Sales increased 62% year-over-year, and profit rose 65% year-on-year to $31.9bn.

On the key metric of datacenter sales, the company reported $51.2bn in revenue, beating expectations of $49bn.Nvidia’s future looks bright, too.The company is projecting fourth-quarter revenue of about $65bn; analysts had predicted the company would issue a guidance of $61bn.CEO Jensen Huang addressed the elephant in the room on Wednesday’s earnings call after Nvidia’s stellar numbers were released.

“There’s been a lot of talk about an AI bubble,” he said.“From our vantage point, we see something very different.As a reminder, Nvidia is unlike any other accelerator.We excel at every phase of AI from pre-training to post-training to inference.”Sign up to TechScapeA weekly dive in to how technology is shaping our livesafter newsletter promotionMarket analysts had been on the lookout for signs that the big AI spenders could be forced to pull back their spending on Nvidia’s wares or show any lack of absolute dedication to the AI investment behemoth that in one form or another represents with some estimates attributing as much as 75% of the S&P 500’s gains in 2025.

Investors have grown wary of the AI boom, with shares in Nvidia and Palantir, a major AI player, falling more than 10% since peaking last month.The Nasdaq stock exchange has seen a broad, panicked selloff over the past few days in response to these fears.Still, Nvidia shares are up about 37% for the year to date, and they rose in after-hours trading on Wednesday.The Nvidia earnings report, and investor reaction over the coming hours or days, will be read into for broader economic signals because AI is now intimately tied, correctly or falsely, to broader economic confidence, with Nvidia as the foundation for the entire artificial intelligence buildout.“Market psychology has been negative this month as investors worried that the artificial intelligence infrastructure buildout was a bubble and in a few years we may look back at this time and point to signs that it was,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management after the earnings report was released.

For bullish analysts, fears that the AI revolution would soon follow the path of internet stocks in 1999 have been entirely overblown, and the AI party is only just getting started.“The largest technology companies in the world are extremely profitable and they are reinvesting billions of dollars into datacenters, servers and chips, and the spending is real,” Zaccarelli added.
societySee all
A picture

How prohibition-based policies caused a cannabis problem | Letters

Your article correctly raised concerns about the harms of higher-strength cannabis on people vulnerable to psychosis (‘I’d run down the road thinking I was God’: a day at the cannabis psychosis clinic, 16 November). However, it didn’t explain how previous prohibition‑based policies designed to reduce cannabis use have driven up the strength of street cannabis, the source of most cannabis for people with psychosis, thus making the problem worse.Furthermore, growing data from the Drug Science T21 project and other prescription databases globally shows that medical cannabis can alleviate a range of psychiatric and neurological disorders, without inducing psychosis. Any suggestion that rates of cannabis-related psychosis could be reduced by limiting medical cannabis access is flawed and is likely to harm patients currently benefiting from it.Prof D Nutt and Prof Ilana CromeDrug Science Have an opinion on anything you’ve read in the Guardian today? Please email us your letter and it will be considered for publication in our letters section

A picture

Musical comfort at the end of your life | Brief letters

Readers who were moved by the article on Kate Munger’s Threshold Choirs (‘It was the last time Mum smiled at me’: the choirs singing to the dying in three-part harmony, 17 November) may like to know that similarly, in the UK, Companion Voices sings for people at the end of life, creating a gentle supportive soundscape. Founded by Judith Silver 12 years ago, more than a dozen groups now offer this voluntary service across England, with more planned.Kay AshtonWallingford, Oxfordshire John Crace’s analysis of Keir Starmer’s hapless, hopeless Labour government (‘I thought the grownups were back in charge!’: John Crace on how Labour shattered his expectations, 19 November) was, as usual, witty and shrewd – apart from his observation that the government’s right hand doesn’t know what the left hand is doing. Actually, it’s worse than that: the right hand doesn’t even know what the right hand is doing.Prof Chris WalshHawarden, Flintshire Zoe Williams’ reflection on the naming of storms (I keep trying to name storms

A picture

Up to 50,000 nurses could quit UK over immigration plans, survey suggests

Up to 50,000 nurses could quit the UK over the government’s immigration proposals, plunging the NHS into its biggest ever workforce crisis, research suggests.Keir Starmer has vowed to curb net migration, with plans to force migrants to wait as long as 10 years to apply to settle in the UK instead of automatically gaining settled status after five years.The measures, which also include plans to raise foreign workers’ skills requirements to degree level and raise the standards of English language required for all types of visa, including dependents, are seen as an attempt to combat the rise of Nigel Farage’s Reform UK party. A public consultation on the plans is expected imminently, sources said.Nursing leaders told the Guardian the plans were “immoral” and treated highly skilled migrants as “political footballs”

A picture

‘Possibly the most prolific sex offender in British history’: the inside story of the Medomsley scandal

At a youth detention centre in north-east England, the paedophile Neville Husband raped and assaulted countless boys. Why was his reign of terror allowed to go on – and why hasn’t there been a public inquiry?When I met Kevin Young in 2012 he was in his early 50s, handsome, charismatic, smart – and utterly broken. The moment he started talking about Medomsley detention centre he was in tears.Young was born in Newcastle, in 1959. At two, he was taken into care, and his parents were convicted of wilful neglect

A picture

‘Shock’ loophole in NSW law meant to protect children against incarceration could mean more will be locked up

The Minns government is seeking to create a loophole in a law meant to provide protection against the incarceration of children, which could mean more children will be locked up.On Tuesday, the New South Wales government announced it was strengthening protections for children aged 10 to 14 by legislating a common law presumption known as doli incapax, which means children cannot commit an offence because they do not understand the difference between right and wrong.The proposed bill will also mandate when that presumption can be rebutted. This includes a loophole which says the presumption can be overturned if prosecutors establish the child committed a crime, and circumstances surrounding the crime prove “beyond reasonable doubt that the child knew at the time of the alleged commission of the offence that the child’s conduct was seriously wrong”.The courts can then make a decision on whether to convict the child “without or despite” evidence of the child’s intellectual or moral development, including intellectual impairment

A picture

Microsoft has ‘ripped off the NHS’, says MP amid call for contracts with British firms

Microsoft has “ripped off the NHS”, it was alleged in parliament on Wednesday, as MPs called on ministers to divert more of the government’s multibillion-pound computing budget away from US technology companies and towards British alternatives.The Seattle-based firm’s UK government contracts include a five-year deal with the NHS to provide productivity tools reportedly worth over £700m, while the wider government spent £1.9bn on Microsoft software licences in the 2024-25 financial year alone.The allegation against Microsoft was made by Samantha Niblett, a Labour member of the House of Commons select committee on science, innovation and technology, who said during questioning of Ian Murray, the minister for digital government and data: “I know for a fact how Microsoft have ripped off the NHS.”Niblett, who worked in the data and technology sector before being elected to parliament in 2024, did not provide further evidence, but when the committee chair, Chi Onwurah, voiced surprise at the claim, she said: “Well, it has