The sound you’re hearing isn’t the pop of the AI bubble – it’s every company that relies on the AI economy breathing a sigh of relief.
NVIDIA, the king of fancy GPU chips that power most AI models, has beaten market expectations again. During the third quarter of 2025, the company generated revenues of $57 billion; This was $2 billion more than most Wall Street analysts had expected.
Even better for NVIDIA and the overall AI economy, almost all of the additional revenue came from the company’s data center business — where the rubber of AI models meets the road of the Internet.
One NVIDIA division that came in below estimates was its gaming chip business – which the AI world doesn’t need to care about.
Everything was revealed in 19 minutes at Nvidia’s Computex 2025 press conference
“Sales are off the charts,” NVIDIA CEO Jensen Huang said in a statement about the company’s Blackwell chips, its latest GPU model. “Cloud GPUs are sold out.” For the fourth quarter of 2025, the company predicts even higher total revenues of $65 billion.
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Huang claimed that the “AI ecosystem” has “entered a virtuous cycle” and is “growing rapidly.” CEOs as recently as October denied that we are in an AI bubble; Now he seems to be saying that this increase can continue indefinitely.
Will the AI bubble still burst?
However, that bubble still exists. OpenAI, Anthropic, Microsoft and almost every other business in the space have so far failed to show any revenue growth from AI services, all relying on NVIDIA chips. But given that almost all the market focus is on the health of NVIDIA’s business, these companies effectively have more runway to prove themselves.
As NVIDIA now looks unstoppable, Google’s recent announcement of its latest top AI model, Gemini 3, had bad news for Jensen Huang. The company says, “The model was trained using Google’s Tensor Processing Units (TPUs)” — in other words, not NVIDIA GPUs.
If Google, whose CEO has admitted there is a bubble, becomes a major player in the AI chip field, there could be a price war between Google and NVIDIA. But that could also give rise to players who rely on AI calculations, making the services significantly cheaper to provide.
In other words, don’t count on the AI bubble bursting immediately – but don’t ignore it either. At least, not after NVIDIA’s next quarterly earnings report, due in January 2026.