Business

This Week in Business 28/11/25

Nvidia releases blowout earnings, but markets remain hesitant

Nvidia released its third quarter earnings for the 2026 fiscal year on 19th November. It posted record revenues of $57 billion, up 22% from the second quarter, and up 62% year-over-year. “Blackwell sales are off the charts, and cloud GPUs are sold out,” reported CEO Jensen Huang, referring to the company’s flagship AI superchip. “Compute demand keeps accelerating and compounding across training and inference – each growing exponentially. We’ve entered the virtuous cycle of AI.” The semiconductor company is on track to surpass Alphabet as the most profitable US corporation.

Despite an initial 6% jump in the stock in after-hours trading, the strong earnings have not been enough to pull the market upwards, with fears of an AI bubble continuing to weigh on investor sentiment. There is a lot of scepticism in relation to ever-increasing market valuations, unsustainable levels of spending and debt, and the circular nature of the financial agreements between the companies involved. The ever-changing geopolitical situation, and uncertainty regarding the Federal Reserve’s decision to cut rates in December only add to the uncertainty. Investors will have to continue holding their breath to determine whether they're riding the next great technological revolution or the crest of a speculative wave.

From Issue 1884

28 November 2025

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