The AI boom has caused chip company Nvidia’s business to continue to grow explosively.
November 20, 2025, 03:37November 20, 2025, 03:38
In the last quarter, sales jumped 62 percent year-on-year to $57 billion. Even before the quarterly report, there were concerns that the euphoria surrounding artificial intelligence might have driven up tech stock prices too high.
Nvidia boss Jensen Huang was also present at the Saudi summit in the White House.Image: keystone
Nvidia exceeded Wall Street’s expectations. Even compared to the previous quarter, there was an increase of 22 percent.
Nvidia shares temporarily rose by more than three percent in after-hours trading. Prices of other chip companies were also up. Shares of major Nvidia customers Google, Microsoft, Amazon and Meta also went up.
Fear of AI bubble
Nvidia chip systems have become a key technology for the development of software with artificial intelligence. They are used for the complex training of AI models, for example for the chatbot ChatGPT, as well as for operating the software. The Nvidia results have become an indicator of the state of the AI industry.
In recent weeks, there have been growing concerns on the stock markets that the great expectations for the future business with artificial intelligence could have led to a bubble in the share prices of tech companies. Accordingly, investors let out some air. Nvidia’s market value fell from $5 to around $4.5 trillion within a few weeks. The chip company remains the most valuable company on the stock exchange.
Growth even without business in China
The bottom line is that Nvidia increased its quarterly profit by 65 percent year-on-year to $31.9 billion. The group’s earnings per share were above analysts’ estimates. Nvidia also clearly exceeded their expectations with its forecast of $65 billion in sales for the current quarter. On average, the market experts had expected a forecast of a good 61.5 billion dollars in sales.
Nvidia continues to achieve growth without the once important Chinese market, in which the group currently no longer has any business following US export restrictions and countermeasures by the government in China. (sda/dpa)