Nvidia delivered absolutely
blockbuster results in the final three months of 2025, as demand for its AI chips went through the roof. Revenue increased an astounding 73% to $68.1 billion, and Nvidia said sales in the current quarter would expand by as much as 78%.
If Nvidia’s stock was up less than 1% (and even dipped slightly into negative territory) after these heroic results, it’s because there’s a fundamental problem at play. More than half of Nvidia’s revenue comes from the five big “hyperscalers”—the Googles and Amazons of the world—who are feverishly buying as many of Nvidia’s GPU chips as they can to stuff in the
massive AI data centers they’re constructing. The big hyperscalers are budgeting nearly $700 billion in capex this year. But at some point, the spending on AI infrastructure has to stop right? Or at least slow down significantly?
Not anytime soon, said CEO Jensen Huang. Businesses are “going to be building out this capacity from this point forward and continue to expand from here," he said on the earnings call.
Huang’s comments may one day be remembered as the peak of the AI bubble—the classic moment that occurs in every bubble when hubris and self-delusion overtake common sense. For that not to be the case, it would mean that, beginning in 2026, the U.S. embarked on one of the greatest and most unprecedented economic expansions in history. It’s a scenario that Huang clearly believes in—n0w he just has to convince investors.—
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