Nvidia surprised markets with fiscal third-quarter revenue of $57.01 billion, beating Wall Street estimates by nearly $2 billion. Meanwhile, Bitcoin (BTC) rebounded above $91,000 after briefly dipping below $89,000, as analysts linked the crypto market’s recent decline to worries over a potential AI bubble.
Nvidia Q3: AI Demand Drives Record Revenue
The chipmaker reported $1.30 earnings per share (EPS) and revenue of $57.01 billion, outperforming estimates of $1.26 EPS and $55.2 billion in revenue. Its data center segment, which powers AI applications, contributed $51.2 billion, highlighting soaring demand for the company’s Blackwell architecture and cloud GPUs.
CEO Jensen Huang noted that Nvidia’s products remain sold out, while CFO Colette Kress highlighted the value of CUDA-powered accelerators, which extend hardware lifespans and reinforce the company’s AI infrastructure dominance. Although the gaming division generated slightly below-expected revenue at $4.3 billion, it still delivered solid returns.
Following the earnings release, Nvidia’s stock surged 5%, and the company’s market capitalization exceeded $5 trillion, cementing its position as the world’s most valuable firm. Other chipmakers, including AMD and Micron, also gained on renewed AI optimism.
Bitcoin Recovers Amid Renewed Optimism
Bitcoin rebounded above $91,000 in early trading after testing lows under $89,000, suggesting investors may view current prices as buying opportunities. The crypto recovery coincides with renewed optimism in AI-related investments, although some large investors remain cautious—Peter Thiel sold a $100 million Nvidia stake, and SoftBank offloaded about $5.8 billion in shares.
Regulators and financial institutions have flagged potential risks from AI-driven market exuberance. The Bank of England warned of systemic threats, the IMF cited bubble risks, and a Bank of America survey found that 45% of fund managers see an AI bubble as the most significant market threat. Despite these concerns, Nvidia’s earnings demonstrated strong underlying demand.
Broader Market Correlations
Recent volatility highlights increasing correlations between crypto and traditional equities. Bitcoin’s decline in recent weeks mirrored major stock indices such as the S&P 500, Nikkei 225, Hang Seng, and Stoxx Europe 600. Even gold, traditionally a safe haven, fell amid uncertainty. Over the last six weeks, the global crypto market has lost more than $1 trillion, a 25% drop since October.
Analysts remain split on Bitcoin’s technical outlook: some see the rebound as re-accumulation by long-term holders, while others warn of buyer fatigue and a possible deeper correction.
Conclusion
Nvidia’s record Q3 results provide a strong signal that AI demand remains robust, offering some reassurance to investors amid concerns about inflated valuations. Bitcoin’s rebound reflects the interconnectedness of crypto and tech markets, though broader macroeconomic risks and investor caution continue to influence market sentiment.