Nvidia Corp. (NVDA) just delivered the earnings report Wall Street desperately needed. On November 19, the chipmaker posted third-quarter results so convincing that they didn't just boost tech stocks—they triggered a full-blown "risk-on" party across multiple asset classes.
The AI Bubble Skeptics Get Pushed Back
For months, a growing chorus of heavyweight investors has been warning that AI hype mirrors the dot-com disaster. OpenAI CEO Sam Altman cautioned in August that investors are "overexcited." Bridgewater founder Ray Dalio drew direct parallels to 1990s excess. Legendary emerging markets investor Mark Mobius predicted a 40% stock plunge in November, citing frothy valuations and reckless spending. Apollo's Torsten Slok went even further, calling today's AI enthusiasm "bigger than the internet bubble."
Even JPMorgan's Jamie Dimon and the IMF have flagged overinvestment concerns, with recent analyses showing 95% of AI pilot programs failing to deliver positive ROI.
Nvidia's blowout numbers essentially said: not so fast. The results demonstrated sustained demand from hyperscalers—Microsoft Corp. (MSFT), Meta Platforms Inc. (META), and Amazon.com Inc. (AMZN) are all doubling down on capital expenditures. CEO Jensen Huang's earlier dismissal of "a lot of talk about an AI bubble" suddenly looked prescient rather than promotional.
Risk-On Assets Catch Fire
The earnings report didn't just lift Nvidia—it sparked gains across a surprisingly diverse range of assets. Crypto markets, which had been hammered by AI skepticism, rebounded sharply. Bitcoin jumped 1.97% to $92,608.46, while Ethereum added 0.33% to reach $3,035.46 as investors rotated into high-beta plays.
Small-cap stocks also caught a bid. The Russell 1000 rose 0.34% to 3,620.03 points, offering relief to growth stocks that had been caught in the crossfire of AI pessimism. Even the Dow Jones Industrial Average, anchored more heavily in industrials and old-economy stocks, gained 0.10% to close at 46,138.77 points.
Gold ticked up to $4,070.54 per ounce, and the U.S. dollar index strengthened 0.05% to 100.2820—hardly the reaction you'd expect if markets thought Nvidia's numbers represented the last gasp of an overheated bubble.
Nvidia Fires Back at Burry's Depreciation Claims
Social media lit up with a counter-narrative aimed squarely at Michael Burry, the "Big Short" investor who recently de-registered his Scion fund after shorting Nvidia. Burry's bearish thesis centered on alleged depreciation fraud: he argued that hyperscalers inflate earnings by claiming GPU useful lives of 5-6 years when the true replacement cycle is closer to 2-3 years, thereby understating depreciation costs as chips rapidly become obsolete.
Nvidia CFO Colette Kress had a devastating rebuttal. She revealed that A100 GPUs deployed back in May 2020 remain at "100% utilization" as of November 2025, thanks to software upgrades like CUDA that extend hardware viability well beyond what critics assume. That's a direct hit against the depreciation fraud narrative.
Nvidia's Dominant Performance Continues
The numbers tell the story of outperformance. Nvidia shares have climbed 34.86% year-to-date, crushing the Nasdaq Composite's 17.03% return and the Nasdaq 100's 17.47% gain. On Wednesday, NVDA closed 2.85% higher at $186.52, then surged another 5.08% in after-hours trading. Over the past year, the stock is up 27.85%.
Technical indicators show Nvidia maintaining stronger price trends over medium and long-term periods, though short-term momentum appears weaker with a less favorable value ranking.
On Thursday, futures for the S&P 500, Nasdaq 100, and Dow Jones indices were all trading higher, extending Wednesday's gains and suggesting the risk-on rally still has legs.
For now, at least, Nvidia's earnings have provided the validation bulls needed to push back against bubble warnings. Whether that confidence holds depends on whether hyperscalers keep spending and whether AI investments eventually deliver the ROI that 95% of pilots have failed to achieve so far. But for this moment, the chipmaker has given risk assets a lifeline.