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Nvidia Just Crushed the AI Bubble Narrative With a Powerhouse Quarter

MarketDash Editorial Team
17 days ago
Wall Street analysts are racing to boost price targets after Nvidia's blowout earnings demolished concerns about an AI spending bubble. The semiconductor giant delivered a quarter so strong that Wedbush's Dan Ives called it a "drop the mic" moment.

If you've been wondering whether artificial intelligence is a bubble ready to pop, Nvidia Corporation (NVDA) just delivered an answer. And it came in the form of earnings results so impressive that analysts are scrambling to raise their price targets and models.

The semiconductor giant's third-quarter revenue and earnings crushed Wall Street estimates, while guidance came in ahead of expectations. More importantly, CEO Jensen Huang addressed bubble concerns head-on, laying out a vision that has tech bulls celebrating and bears retreating to their caves.

The Analyst Chorus Gets Louder

Following the earnings report, a parade of Wall Street analysts updated their outlooks on Nvidia. Here's the rundown:

  • Bank of America analyst Vivek Arya reiterated a Buy rating with a price target of $275.
  • DA Davidson analyst Gil Luria reiterated a Buy rating with a price target of $250.
  • KeyBanc analyst John Vinh maintained an Overweight rating and raised the price target from $250 to $275.
  • Wedbush analyst Matt Bryson reiterated an Outperform rating and raised the price target from $210 to $230.
  • JPMorgan analyst Harlan Sur reiterated an Overweight rating and raised the price target from $215 to $250.
  • Rosenblatt analyst Kevin Cassidy maintained a Buy rating and raised the price target from $240 to $245.
  • Benchmark analyst Cody Acree reiterated a Buy rating and raised the price target from $220 to $250.
  • Needham analyst Quinn Bolton maintained a Buy rating with a price target of $240.

What's Driving the Enthusiasm

Bank of America: Arya praised the semiconductor giant's "solid growth" and raised his estimates based on Blackwell's strong ramp and visibility to $500 billion in sales. He called Nvidia the "top sector pick as AI demand continues to strengthen."

The stock's valuation remains "compelling," Arya noted, with potential earnings per share growth rates exceeding 40% going forward.

DA Davidson: Luria zeroed in on strong demand for Blackwell Ultra as a key highlight. The ultra-high-performance chip now accounts for around 66% of Blackwell revenue, and Luria expects it to become "an even greater percentage of aggregate Blackwell generation sales in the coming quarter."

KeyBanc: Vinh increased his price target after highlighting the strong quarter and record data center revenue. "We're encouraged by these strong results and raise ests to reflect the $500B pipeline," he said.

The analyst emphasized Nvidia's surging data center demand for AI applications, noting "NVIDIA's central role in the AI revolution, positioning it as the foundational supplier for next-gen digital infrastructure."

Wedbush: Bryson pointed to quarterly results, guidance, and a target of $500 billion in Blackwell/Rubin revenue by 2026 as evidence of potential upside. He noted that "Nvidia indicated certain new deals weren't anticipated in their projection for $500 billion in Blackwell/Rubin sales by end of CY'26," suggesting even more room to run.

Bryson also highlighted improvements in Nvidia's supply chain during the quarter.

In a separate note, Wedbush's Dan Ives delivered what might be the most colorful take on the results. "This week was one of them and last night the Godfather of AI Jensen and Nvidia answered the 'AI Bubble' question loud and clear with a drop the mic quarter/guidance," Ives wrote.

According to Ives, Huang and Nvidia provided the key numbers, guidance and strategy that "tech bulls needed to hear." The pure numbers and strategic vision show "the AI Revolution is NOT a Bubble," he added. Instead, it's year three of a 10-year buildout of this fourth Industrial Revolution.

Bears worried about valuation will miss out on the tech bull market by "hibernating in their caves," Ives said. "We believe this is still the Top of the 3rd inning in the AI Field of Dreams game being played."

JPMorgan: Sur highlighted supply chain improvements and backlog growth in the third quarter. "Amid a swell of concern heading into this print, Nvidia delivered not just solid results and guidance, but a beat-and-raise that was even stronger than most had expected," he said.

The analyst pointed to multiple ways Nvidia can drive return on investment, including the $3 trillion to $4 trillion in annual spending on AI infrastructure expected by 2030. "Nvidia is positioned to capture a significant majority of the incremental spend," Sur noted.

Rosenblatt: Cassidy said Nvidia showed AI growth was "alive and well" in the third quarter. The report and commentary should help minimize concerns of the AI market being in a bubble, he added. "The results show no slowdown in AI compute demand."

Benchmark: Acree suggested that pressure on AI-related companies and AI spending concerns may ease after Nvidia's report. "Jensen, went out of his way to specifically address the market's concerns of an AI bubble, with an in-depth discussion of the long-term extendibility of Nvidia's unique position," the analyst said.

Macro trends in the AI sector reaffirm estimates of $3 trillion to $4 trillion spending on AI infrastructure in the future, Acree added. "We believe NVDA deserves to trade with a forward multiple at some level relative to its earnings growth rate."

Needham: Bolton focused on Blackwell and its unprecedented demand, suggesting the company could have upside ahead. The analyst noted that the $500 billion backlog figure may not include new contracts signed or potential sales in China.

The keys to a Buy rating on Nvidia stock, according to Bolton, are the attractive valuation, favorable risk/reward profile, superior balance sheet, and the crucial need for AI capabilities and data center buildouts.

Where the Stock Stands

At last check, Nvidia stock is down 1.1% to $184.48 on Thursday versus a 52-week trading range of $86.63 to $212.19. Shares are up 33.3% year-to-date in 2025.

The modest pullback following such strong results is hardly unusual. Sometimes the market needs time to digest just how much runway a company really has ahead of it.

Back to News

Nvidia Just Crushed the AI Bubble Narrative With a Powerhouse Quarter

MarketDash Editorial Team
17 days ago
Wall Street analysts are racing to boost price targets after Nvidia's blowout earnings demolished concerns about an AI spending bubble. The semiconductor giant delivered a quarter so strong that Wedbush's Dan Ives called it a "drop the mic" moment.

If you've been wondering whether artificial intelligence is a bubble ready to pop, Nvidia Corporation (NVDA) just delivered an answer. And it came in the form of earnings results so impressive that analysts are scrambling to raise their price targets and models.

The semiconductor giant's third-quarter revenue and earnings crushed Wall Street estimates, while guidance came in ahead of expectations. More importantly, CEO Jensen Huang addressed bubble concerns head-on, laying out a vision that has tech bulls celebrating and bears retreating to their caves.

The Analyst Chorus Gets Louder

Following the earnings report, a parade of Wall Street analysts updated their outlooks on Nvidia. Here's the rundown:

  • Bank of America analyst Vivek Arya reiterated a Buy rating with a price target of $275.
  • DA Davidson analyst Gil Luria reiterated a Buy rating with a price target of $250.
  • KeyBanc analyst John Vinh maintained an Overweight rating and raised the price target from $250 to $275.
  • Wedbush analyst Matt Bryson reiterated an Outperform rating and raised the price target from $210 to $230.
  • JPMorgan analyst Harlan Sur reiterated an Overweight rating and raised the price target from $215 to $250.
  • Rosenblatt analyst Kevin Cassidy maintained a Buy rating and raised the price target from $240 to $245.
  • Benchmark analyst Cody Acree reiterated a Buy rating and raised the price target from $220 to $250.
  • Needham analyst Quinn Bolton maintained a Buy rating with a price target of $240.

What's Driving the Enthusiasm

Bank of America: Arya praised the semiconductor giant's "solid growth" and raised his estimates based on Blackwell's strong ramp and visibility to $500 billion in sales. He called Nvidia the "top sector pick as AI demand continues to strengthen."

The stock's valuation remains "compelling," Arya noted, with potential earnings per share growth rates exceeding 40% going forward.

DA Davidson: Luria zeroed in on strong demand for Blackwell Ultra as a key highlight. The ultra-high-performance chip now accounts for around 66% of Blackwell revenue, and Luria expects it to become "an even greater percentage of aggregate Blackwell generation sales in the coming quarter."

KeyBanc: Vinh increased his price target after highlighting the strong quarter and record data center revenue. "We're encouraged by these strong results and raise ests to reflect the $500B pipeline," he said.

The analyst emphasized Nvidia's surging data center demand for AI applications, noting "NVIDIA's central role in the AI revolution, positioning it as the foundational supplier for next-gen digital infrastructure."

Wedbush: Bryson pointed to quarterly results, guidance, and a target of $500 billion in Blackwell/Rubin revenue by 2026 as evidence of potential upside. He noted that "Nvidia indicated certain new deals weren't anticipated in their projection for $500 billion in Blackwell/Rubin sales by end of CY'26," suggesting even more room to run.

Bryson also highlighted improvements in Nvidia's supply chain during the quarter.

In a separate note, Wedbush's Dan Ives delivered what might be the most colorful take on the results. "This week was one of them and last night the Godfather of AI Jensen and Nvidia answered the 'AI Bubble' question loud and clear with a drop the mic quarter/guidance," Ives wrote.

According to Ives, Huang and Nvidia provided the key numbers, guidance and strategy that "tech bulls needed to hear." The pure numbers and strategic vision show "the AI Revolution is NOT a Bubble," he added. Instead, it's year three of a 10-year buildout of this fourth Industrial Revolution.

Bears worried about valuation will miss out on the tech bull market by "hibernating in their caves," Ives said. "We believe this is still the Top of the 3rd inning in the AI Field of Dreams game being played."

JPMorgan: Sur highlighted supply chain improvements and backlog growth in the third quarter. "Amid a swell of concern heading into this print, Nvidia delivered not just solid results and guidance, but a beat-and-raise that was even stronger than most had expected," he said.

The analyst pointed to multiple ways Nvidia can drive return on investment, including the $3 trillion to $4 trillion in annual spending on AI infrastructure expected by 2030. "Nvidia is positioned to capture a significant majority of the incremental spend," Sur noted.

Rosenblatt: Cassidy said Nvidia showed AI growth was "alive and well" in the third quarter. The report and commentary should help minimize concerns of the AI market being in a bubble, he added. "The results show no slowdown in AI compute demand."

Benchmark: Acree suggested that pressure on AI-related companies and AI spending concerns may ease after Nvidia's report. "Jensen, went out of his way to specifically address the market's concerns of an AI bubble, with an in-depth discussion of the long-term extendibility of Nvidia's unique position," the analyst said.

Macro trends in the AI sector reaffirm estimates of $3 trillion to $4 trillion spending on AI infrastructure in the future, Acree added. "We believe NVDA deserves to trade with a forward multiple at some level relative to its earnings growth rate."

Needham: Bolton focused on Blackwell and its unprecedented demand, suggesting the company could have upside ahead. The analyst noted that the $500 billion backlog figure may not include new contracts signed or potential sales in China.

The keys to a Buy rating on Nvidia stock, according to Bolton, are the attractive valuation, favorable risk/reward profile, superior balance sheet, and the crucial need for AI capabilities and data center buildouts.

Where the Stock Stands

At last check, Nvidia stock is down 1.1% to $184.48 on Thursday versus a 52-week trading range of $86.63 to $212.19. Shares are up 33.3% year-to-date in 2025.

The modest pullback following such strong results is hardly unusual. Sometimes the market needs time to digest just how much runway a company really has ahead of it.

    Nvidia Just Crushed the AI Bubble Narrative With a Powerhouse Quarter - MarketDash News