NVIDIA earnings report: What it means for AI in 2026

That sound you hear is not the pop of the AI bubble — it is each firm that depends on the AI financial system respiration an enormous sigh of aid.

NVIDIA, the king of fancy GPU chips that energy most AI fashions, simply beat market expectations once more. In the course of the third quarter of 2025, the corporate made $57 billion in income; this was $2 billion greater than most Wall Road analysts anticipated.

Even higher for NVIDIA, and for the entire AI financial system, virtually all that further income got here from the corporate’s knowledge middle enterprise — which is the place the rubber of AI fashions meets the highway of the web.

The one NVIDIA division that got here in decrease than estimates was its gaming chip enterprise — which AI world needn’t care about.

“Gross sales are off the charts,” NVIDIA CEO Jensen Huang stated of the corporate’s Blackwell chips, its newest GPU mannequin, in a press release. “Cloud GPUs are offered out.” For the fourth quarter of 2025, the corporate predicts even increased complete income of $65 billion.

Huang went on to assert that the “AI ecosystem” had “entered a virtuous cycle” and was “scaling quick.” The CEO denied as not too long ago as October that we’re in an AI bubble; now he appears to be saying this progress can final indefinitely.

Will the AI bubble nonetheless burst?

That bubble nonetheless exists, nevertheless. OpenAI, Anthropic, Microsoft, and virtually each different enterprise within the area have up to now failed to indicate any income progress from all of the AI providers that depend on NVIDIA chips. However given that the majority the market focus is on the well being of NVIDIA’s enterprise, these corporations successfully simply received extra runway through which to show themselves.

As invulnerable as NVIDIA appears to be like now, there was unhealthy information for Jensen Huang in Google’s current announcement of its newest prime AI mannequin, Gemini 3. The mannequin “was skilled utilizing Google’s Tensor Processing Models (TPUs),” the corporate says — in different phrases, not NVIDIA GPUs.

If Google, whose CEO has admitted there’s a bubble, turns into a significant participant within the AI chip area, worth wars between Google and NVIDIA may consequence. However that too may carry the gamers that depend on AI compute, making it considerably cheaper to offer providers.

In different phrases, do not rely on the AI bubble popping instantly — however do not rely it out, both. At the least, not after NVIDIA’s subsequent quarterly earnings report, due in January 2026.