KEY POINTS

• Nvidia beat revenue expectations and delivered strong fourth-quarter guidance.

• During the earnings call, the AI chip giant aimed to “disprove nearly every bear argument,” one analyst told CNBC.

• The report lifted AI-related stocks around the world.

Nvidia shares initially jumped as much as 5% on Thursday after the company reported stronger-than-expected third-quarter results — but the early rally faded, and the stock later slipped into negative territory.

On Wednesday, Nvidia reported revenue of $57.01 billion, up 62% year over year, easily surpassing Wall Street estimates. The company also issued upbeat guidance for fourth-quarter sales.

“There’s been a lot of discussion about an AI bubble,” CEO Jensen Huang told investors on the earnings call. “From where we stand, we see something very different.”

The blockbuster quarter surpassed even the most optimistic expectations for the AI chip leader. Many major analysts highlighted the strong results, though Deutsche Bank’s Ross Seymore argued that Nvidia shares are now “fairly valued,” maintaining a neutral rating.

Nvidia’s positive outlook helped revive confidence across the AI sector, which had recently come under pressure due to concerns about high valuations, financing risks, and possible chip depreciation.

Following the earnings report, a range of AI-linked stocks—including Advanced Micro Devices, Broadcom, and power-infrastructure names like Eaton—rallied. However, all of these stocks turned lower on Thursday amid a broader market pullback.