Nvidia crushes expectations, signaling the AI market still has major upside

Nvidia, the leading force behind the artificial intelligence revolution, delivered another standout earnings report — a strong signal that both the markets and the broader economy may still have significant growth ahead.

U.S. stocks were set to surge Thursday morning after Nvidia revealed blockbuster results that reinforced the momentum of the AI boom driving much of this year’s market gains. Futures tied to the S&P 500 rose about 1%, while Nasdaq futures jumped 1.5%.

On Wednesday, Nvidia reported explosive demand for its Blackwell AI chips, with CEO Jensen Huang saying sales were “off the charts,” and other key processors were already “sold out.”

Addressing ongoing doubts about the sustainability of AI investments, Huang pushed back:
“People are talking about an AI bubble. From where we stand, we see something entirely different.”

Wedbush Securities analyst Dan Ives agreed, calling it “a golden quarter for Nvidia,” adding that the surge in demand proves the AI boom remains in its early stages.

Nvidia shares climbed more than 4% in after-hours trading following the report.

The company’s chips have fueled a massive wave of data center construction — now attracting more spending than all other manufacturing sectors combined, according to S&P Global. These investments have underpinned the U.S. economy even as other areas have softened.

But recent volatility in tech stocks has raised concerns about whether AI-driven market gains are slowing — and what that might mean for the economy if AI’s wealth effect tapers off.

For now, Nvidia’s strong results appear to calm those fears. Huang recently revealed that Nvidia has $500 billion in chip orders lined up across 2025 and 2026.

Still, analysts remain wary about “circular” AI investments, where major tech companies pour money into each other’s AI initiatives. Nvidia and Microsoft’s recent $10 billion commitment to AI startup Anthropic is one such example — yet neither company saw their stock price rise on the announcement.

Deutsche Bank analysts interpret this as investor caution about AI-related mega-deals intensifying.

The big question remains: Are the recent market dips just a brief reset, or a sign of a more lasting shift?

For optimists, Nvidia’s blowout performance continues to validate their confidence.

“We believe the investment boom still has runway,” Goldman Sachs analysts wrote, noting the overall economy remains resilient and supportive of future market gains.