Chipmaker Nvidia saw its shares rise by 4 percent to ₹195.95 in opening trade on Nasdaq on Thursday, following a significant revenue beat in its third-quarter earnings, exceeding Wall Street expectations. CLSA upheld its high-conviction outperform rating for the stock, indicating that the latest results reflect an accelerating trend in global AI development.
Following post-market hours, Nvidia reported third-quarter revenue of approximately $57 billion, surpassing its previous guidance and marking its most significant earnings surprise in four quarters, according to CLSA’s analysis. Earnings per share reached $1.30, also exceeding Wall Street forecasts.
The company raised its guidance for the current quarter to around $65 billion, with projections reaching up to $66.3 billion, significantly above analysts’ estimates and indicating an anticipated acceleration in year-over-year growth.
In a conference call, Nvidia CEO Jensen Huang addressed concerns from investors about a rapid increase in AI spending potentially signaling an impending bubble, stating, “We see something very different.”
Market analysts assert that Nvidia’s latest quarter provides a compelling counter-narrative to bubble concerns. Ross Maxwell, Global Strategy Lead at VT Markets, described the results as a “timely relief to the markets,” emphasizing that Nvidia’s guidance reduces uncertainties in the sector, thereby allowing investors to feel more secure in their commitments given Nvidia’s optimistic outlook for sustained growth.
Maxwell observed that Nvidia’s performance supports the notion that demand for AI infrastructure remains robust, despite scrutiny on valuations within the sector. CLSA analysts echoed this sentiment, noting that Nvidia’s Q4 forecast indicates a “steady, if not accelerating AI build.” They highlighted increasing token consumption, a persistent global shortage of AI computing capacity, and Nvidia’s dominant 80 percent share of the GPU market as critical factors bolstering their positive outlook.
The report also noted substantial growth across Nvidia’s primary business lines. GPU sales rose by 56 percent year-on-year, networking revenue increased by 162 percent, and data center revenue expanded 66 percent, slightly outpacing overall company growth. The gross margin improved sequentially by 100 basis points and is projected to rise further in the current quarter.
However, analysts issue a cautionary note: sentiment may shift if Nvidia’s growth trajectory begins to show signs of slowing. “If future quarters don’t continue to accelerate, sentiment can reverse quickly,” Maxwell pointed out. While Nvidia’s results instill confidence in the overarching AI ecosystem, he warned that not all companies in the sector may replicate its success, particularly those with weaker competitive positions.
For the moment, Nvidia’s remarkable performance seems firmly secure. With demand continuously surpassing supply and customers eager to deploy larger AI models, the latest quarter underscores why investors continue to regard Nvidia as a benchmark for the global AI economy.
Published on November 20, 2025.
