1、Nvidia’s Q3 earnings reignited the AI rally – with 62% revenue growth and bullish 65% guidance for Q4, showing that AI demand is accelerating, not fading.
2、AI infrastructure is hitting capacity across chips, clouds, and power, with Nvidia forecasting $500 billion in product visibility through 2026 – proof of a durable capex cycle.
3、Investors should look beyond Nvidia to the broader AI stack, including AMD, CoreWeave, Oklo, and Seagate – all positioned to benefit from the next wave of AI build-out.
For the past several weeks, fears about an ‘AI bubble’ have been hammering AI stocks.
Big Tech’s soaringcapex has traders worried that firms are overspending only to underdeliver – and that’s been weighing heavily on the AItrade.
This is illustrated by the Global XArtificial Intelligence & Technology ETF (AIQ) – astrong proxy for the industry – which has been on adownward slope since late October.
That slump mirrored fading confidence in AIdemand – until Nvidia (NVDA)changed the tone last night… and resuscitated the AI stock rally.
The tech titan delivered a monsterthird-quarter earnings report – with even more monstrous guidance for Q4; the
sum of which confirms that the AI frenzy is speeding up, not slowing
down.
Revenues rose 62% in Q3 and are expected torise 65% next quarter. This is the first time since late 2023 thatNvidia’s sales growth rate has re-accelerated in twoconsecutive quarters.
After six straight quarters of slowinggrowth, the AI plumbing just hit the gas again – and the numbers tell the
story…
Nvidia Earnings Overview: The AI EngineIs Accelerating Again
Let’s go over a quick rundown of Nvidia’slatest numbers so you can see just why we’re so bullish here:
Q3 revenue: $57 billion, up 62% year-over-year (YoY) and 22% quarter-over-quarter (QoQ)
Data center revenue: $51.2 billion, up 66% YoY and $10 billion sequentially
Q4 guidance: ~$65 billion in revenue, up ~65% YoY at the midpoint
Gross margin: ~73-75% non-GAAP – at this scale
We feel it’s important to highlight thatthis isn’t some tiny high-growth software start-up. Nvidia is running at
a $200 billion-plus annualized revenue pace and stillcompounding north of 60%.
And growth is picking up steam.
For the past six quarters, Nvidia’s salesgrowth rate had been slowing. Bears believed it to be “the beginning of the
end.” But what this quarterly performance just proved is that AI demand wasn’t
dying – it was digesting before its next leg up.
Now:
Growth has re-accelerated to 62%.
Management is calling for even faster growth next quarter at 65%.
And that’s with essentially zero China data center revenue baked in.
If you’re looking for evidence that the AIBoom is “slowing,” you won’t find it in Nvidia’s financials.
And that’s just from what we can see on thesurface…
The AI Boom Is Speeding Up, Not SlowingDown
Under the hood, the story is even morebullish than what the headline numbers suggest.
Cloud Providers Are Sold Out
On the Nvidia’s conference call, managementsaid the clouds are sold out and that the GPU installed base –Blackwell, Hopper, and older Ampere – is fullyutilized.
Translation: there is no sign ofhyperscalers slamming on the brakes. If anything, they’re still flooring it.
With current GPU capacity tapped, attentionnow turns to how far hyperscalers are willing to expand.
AI Capex Spending Is Surging
That full utilization is exactly why Nvidianow sees visibility into roughly $500 billion of Blackwell +Rubin revenue through the end of 2026 – and that number has been increasing asnew AI factory deals get signed.
Meanwhile, external estimates now see AIinfrastructure spending heading toward $3- to $4 trillion by2030.
If this were a bubble that was about topop, we’d be seeing missed estimates, weak guidance, slowing orders, and
contracting capex plans.
Instead, we’re witnessing beat-and-raiseperformance, re-accelerating growth, and biggerlong-term capex envelopes.
The ‘AI Bubble’ Fear Just Got Debunked
In effect, Nvidia’s response to WallStreet’s top fear was: ‘Appreciate the concern. See: 62% growth, 65%forward guidance, and sold-out clouds.’
Jensen Huang literally said he doesn’t seean AI bubble – he sees real, widespread demand across clouds,enterprises, and emerging “agentic” and physical AI use cases. And Nvidia’s
numbers back him up.
What Nvidia’s Results Mean for AI Stocks
When Nvidia – the core infrastructuretollbooth of AI – is growing faster again, it sendsone clear macro signal: The AI Boom is not ending but compounding.
We’re still early in three overlappingtransitions:
CPU → accelerated computing
Static software → generative AI
- Screen-bound apps → agentic + physical AI (aka robotics)
- Each wave adds a new layer of demand ontop of the last one. That’s how you end up with a world where AIchips, clouds, power, magnets, and storage all become multi-trillion-dollar
ecosystems…