The quarter was extraordinary by almost any measure, yet CEO Jensen Huang told employees in a leaked internal meeting that “the market did not appreciate” the company’s performance. The reaction reflects a widening gap between Nvidia’s operational strength and investor anxiety over AI valuations.

Record Earnings — But Mixed Market Response

Nvidia reported $57.01 billion in quarterly revenue, a 62% year-over-year increase, alongside $1.30 diluted EPS, both surpassing analyst expectations. Data center sales — the core of its AI business — reached $51.2 billion, up 66% from a year earlier.
The company also projected a strong next quarter with $65 billion in forecasted revenue, beating consensus estimates.
However, despite the stellar numbers, Nvidia’s stock — after a brief spike — slipped as investors continued to debate whether AI valuations were becoming overheated.

Huang’s All-Hands: A CEO Facing Impossible Expectations

In the leaked all-hands meeting, Huang suggested Nvidia is stuck in a narrative trap: a weak quarter would trigger panic, while a strong one fuels “AI bubble” accusations.
He told employees, “If we delivered a bad quarter … the whole world would’ve fallen apart. If we delivered a great quarter, we are fueling the AI bubble.”
Huang also referenced online memes describing Nvidia as “holding the planet together,” highlighting how deeply interconnected Nvidia has become with global AI expectations.
In a candid moment, he pointed out that Nvidia had recently lost $500 billion in market cap, noting: “You’ve gotta be worth a lot to lose $500 billion in a few weeks.”
The comments underscore the intense pressure surrounding a company seen as the backbone of the AI economy.

Broader Implications: Valuation Stress, Market Psychology, and Macro Risk

The quarter reveals a telling paradox: exceptional fundamentals paired with fragile market psychology. Demand for Nvidia’s next-generation platforms, including Blackwell, remains strong, with the company saying the architecture continues to lead across customer categories.
Yet investors appear increasingly sensitive to lofty valuations, macro pressures, and the possibility of overestimated long-term AI spending.
Given Nvidia’s central role in accelerated computing and AI infrastructure, its results function as a global macro signal. Any perceived slowdown or overextension in AI demand could reverberate through indexes heavily weighted toward tech and semiconductor stocks.

Looking forward, markets will focus on whether Nvidia can maintain its growth trajectory without reigniting “bubble” concerns. Areas to watch include supply constraints for Blackwell chips, export-related risks, AI capex trends, and the broader economic environment. If enterprise and hyperscaler demand holds firm, Nvidia could reinforce its position at the center of the AI industrial cycle. For now, the real uncertainty lies not in Nvidia’s performance — but in how much confidence investors place in its continued momentum.