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Did Nvidia Do Enough to Chill A.I. Bubble Fears?
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Santa Clara, CA – November 20, 2025 – Nvidia, the semiconductor giant fueling the artificial intelligence revolution, reported blowout results
yesterday, temporarily calming anxieties surrounding a potential A.I. bubble.While revenue surged, analysts and investors are still scrutinizing the company’s forecasts and the broader sustainability of the current tech rally. The question isn’t simply *if* Nvidia is succeeding,but whether it’s success can continue to justify the market’s soaring valuations.
The company’s fiscal second-quarter earnings, released November 19, 2025, revealed revenue of $26.97 billion, a staggering 301% increase year-over-year. this growth was primarily driven by demand for Nvidia’s high-end GPUs,essential for training and deploying large language models (LLMs) like those powering ChatGPT and other generative A.I. applications. However, the surge in demand has also lead to concerns about potential oversupply and a subsequent price correction.
Did You Know? …
Nvidia’s stock has become a key indicator of investor sentiment towards the A.I.sector, frequently enough mirroring the performance of other A.I.-related companies.
Key Data & Timeline
| Metric | Q2 2024 | Q2 2025 | YoY Change |
|---|---|---|---|
| Revenue (USD Billions) | $6.70 | $26.97 | +301% |
| Data Centre Revenue (USD Billions) | $2.21 | $22.60 | +922% |
| Gross Margin | 46.1% | 76.8% | +29.7% |
| Stock Price (Nov 19, 2025) | $650 | $825 | +27% |
| H100 GPU Demand | High | Extremely High | Increasing |
Despite the notable numbers, Nvidia’s guidance for the next quarter was more cautious. while still projecting substantial growth,the company acknowledged potential headwinds,including geopolitical uncertainties and export restrictions. These restrictions, especially those impacting sales to China, represent a notable risk to Nvidia’s future revenue streams.As noted by the U.S. Department of Commerce export controls on advanced semiconductors are designed to limit China’s access to cutting-edge technology.
Pro Tip: …
Pay close attention to Nvidia’s data center revenue, as it’s the primary driver of their current growth and a key indicator of A.I. adoption rates.
The Broader A.I. Rally & Concerns
Nvidia’s performance is inextricably linked to the broader A.I. rally, which has seen significant investment flowing into companies developing and deploying A.I. technologies. However, some analysts warn that the current valuations of many A.I. companies are unsustainable. “The market is pricing in perfection
,” says Michael J. de la Merced, a financial analyst at the New York Times, “and any sign of slowing growth could trigger a sharp correction.”
“The current A.I.boom is reminiscent of the dot-com bubble, with valuations frequently enough exceeding essential realities.” – Bernhard Warner, Tech Industry Observer
The core concern revolves around whether demand for A.I. technologies will continue to grow at the current
