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Nvidia reports better-than-expected earnings as fears mount over AI bubble 

admin - Latest News - November 20, 2025
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Nvidia beat expected earnings and revenue by more than $2 billion. NBC News’ Brian Cheung details why this matters and the impact it’s having on the markets. 



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Nov. 19, 2025, 10:44 AM EST / Updated Nov. 19, 2025, 4:46 PM ESTBy Rob WileComputer-chip giant Nvidia reported earnings and revenue Wednesday that beat Wall Street estimates, a signal to investors that the artificial intelligence boom that has fueled 2025’s record U.S. stock market gains and backstopped the economy writ-large likely has more room to run. Sales of its trademark Blackwell AI chips “are off the charts,” while another set of key computer processing units “are sold out,” Jensen Huang, founder and CEO of NVIDIA, said in a statement.Shares of the world’s most valuable company were up approximately 3% in after-hours trading. Nvidia’s chips have been the catalysts for a massive build-out of data centers that have supplied a backbone to the U.S. economy amid slowdowns elsewhere. More money is flowing into building data centers than all other manufacturing facility types combined, according to the research group S&P Global.Until recently, that spending has also powered major stock indexes to record highs. Lately, however, stocks have shown signs of wobbling lately. The declines in share prices — led by tech companies — have sparked debates about whether AI-driven gains are beginning to slow. This raises a bigger question: how the broader economy will perform if it no longer benefits from all the wealth the AI boom is creating. Wall Street woes: Is the AI bubble starting to burst?02:17The U.S. economy has become “highly dependent upon three basic elements: continued consumption amongst the affluent, AI investments, and asset appreciation,” Bill Mann, chief investment strategist at Motley Fool Asset Management, said in a statement Wednesday.“The market downdraft, led by the recent high-flying tech companies, is a recognition that the expectations for AI returns may be overly optimistic,” he said.Huang said last month that his company had $500 billion in orders for its chips, for 2025 and 2026 combined.“This is how much business is on the books. Half a trillion dollars’ worth so far,” Huang said at a conference in Washington, D.C.Alongside broader concerns about the state of the U.S. economy, stock market momentum has been tripped up by worries about circular dealing among AI’s biggest players. This means the same money is being passed back and forth between several companies — even as each company’s individual value climbs.Nvidia is a fixture in the kinds of deals that are raising concerns. It recently announced a commitment alongside Microsoft to fund AI software provider Anthropic with $10 billion. Nvidia CEO Jensen Huang during the Live Keynote Pregame of the Nvidia GPU Technology Conference in Washington, D.C., on Oct. 28.Jim Watson / AFP – Getty Images fileThis kind of big collaboration news would typically boost the stock prices of all the companies involved. But neither Nvidia’s nor Microsoft’s stock got a boost from the Anthropic announcement.Analysts with Deutsche Bank said this is a sign of the ongoing investor wariness about deals like this.“It goes to show how sentiment has turned more negative in the last few weeks, with the circular AI deals being treated with increasing caution as the conversation around a potential bubble has gathered pace,” they wrote in a note published Wednesday. The question now is whether the latest market hiccups represent a temporary pullback or the onset of a more permanent state of affairs. Most experts are cautiously optimistic that the market will continue to climb. “We think the investment boom has room to run,” Goldman Sachs researchers wrote in a note published Wednesday, adding that the economy writ large has remained resilient, something that should provide ongoing support to stock returns. Stock “valuations are certainly stretched, yet they remain below the extremes of the dot-com era,” Seema Shah, chief strategist at Principal Asset Management, wrote in a note published last week. What’s more, many firms’ high stock prices are justified by still-solid earnings growth and robust revenue prospects, she wrote. Still, “some investor skepticism about the likely return on that investment is healthy, particularly when it is impossible to quantify the scale of productivity improvement to expect,” she wrote. Rob WileRob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.
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Nov. 10, 2025, 12:58 PM ESTBy Kate Reilly and Corky SiemaszkoThere may soon be an end to the government shutdown that has been causing massive flight delays for weeks, but the travel nightmare caused by the political chaos in Washington showed no signs of abating Monday.A day after senators approved a preliminary agreement to end the impasse, which is now in its 41st day, the Federal Aviation Administration announced it would continue to restrict commercial flights into and out of some of the country’s busiest airports.As of Monday morning, more than 1,400 flights had been canceled of the more than 25,000 scheduled, according to Cirium, an aviation analytics company. On Sunday, more than 2,600 flights were canceled, which amounted to about 10% of all scheduled flights. It’s not clear how many were scheduled cancellations because of the shutdown and how many were canceled for other reasons, such as weather.And the number of scheduled flight cancellations is expected to increase to 6% on Tuesday, up from the initial 4% that started on Friday. Lolita Honkpo, who was back at Newark Liberty International Airport in New Jersey on Monday after her flight to Atlanta was canceled on Sunday, said that she was fed up with the government shutdown and that it was time to make “every person in a position of power uncomfortable about this.””I think that, really, people should be calling their Congress people at this point,” Honkpo said.The airports where the FAA was restricting flights Monday include Chicago O’Hare International Airport; Hartsfield-Jackson Atlanta International Airport; Ronald Reagan Washington National Airport; Boston Logan International Airport; Los Angeles International Airport; Dallas Fort Worth International Airport; George Bush Intercontinental Airport in Houston; Harry Reid International Airport in Las Vegas; Denver International Airport; and two of the three major airports in the New York City metropolitan area.Travelers make their way through a security line at Boston Logan International Airport on Monday. Joseph Prezioso / AFP – Getty ImagesAll are airports that have been grappling with staffing shortages since air traffic controllers have been working without pay because of the shutdown.Controllers are considered essential workers and not allowed to walk off their jobs — even if they’re not being paid. Airports across the country have reported staffing shortages and flight delays since the start of the government shutdown.President Donald Trump, in a post Monday on Truth Social, threatened to dock the pay of air traffic controllers who have missed work and said he would recommend a $10,000 bonus for those who haven’t taken any time off.“For those that did nothing but complain, and took time off, even though everyone knew they would be paid, IN FULL, shortly into the future, I am NOT HAPPY WITH YOU,” Trump wrote.Nick Daniels, president of the National Air Traffic Controllers Association, who has steadfastly defended the controllers through the crisis, called his members “unsung heroes” during a news conference on Monday.“They are doing everything they can to hold this system together and be out there serving the American public during these trying times, 41 days without pay is unacceptable,” Daniels said. “Air traffic controllers should not be the political pawn during a government shutdown.”Responding to Trump’s post, Daniels said: “I’ll take anything that recognizes these hard-working men and women, but we’ll work with the administration on any issues that are out there.””Air traffic controllers will continue to show up during this shutdown,” he said. “They’ve endured the longest shutdown in American history, and every single day they absolutely, not only deserve their pay, they deserve to be recognized for what’s going on, so we’ll work with the administration through it.”Kate ReillyKate Reilly is a news associate with NBC News.Corky SiemaszkoCorky Siemaszko is a senior reporter for NBC News Digital.Jay Blackman and Sam Brock contributed.
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