Nvidia Turns Negative; Ray Dalio Warns Market Boom Is a "Big Bubble"

The stock market’s early rally fizzled recently, with the S&P 500 swinging from a nearly 2% gain to a slight sell-off at one point last week.

The chipmaker announced a staggering $57 billion in revenue in the third quarter, up 22% from the prior quarter and 62% from a year earlier. (Photo: NVIDIA Facebook)

Nvidia, which initially jumped after reporting strong earnings, reversed and fell 1% into the red, along with the rest of the mega-cap artificial intelligence (AI) trade, Eva Roytburg reported for Fortune.

The broader market mood was not helped by mixed economic data and uncertainty around the Federal Reserve’s next move, especially after a canceled jobs report and signs of uneven labor-market conditions.

And then there was Ray Dalio.

The billionaire founder of Bridgewater Associates warned in a CNBC interview that investors are misreading the underlying mechanics of today’s rally, even as AI giants like Nvidia insist the boom is nowhere near finished.

“There is definitely a bubble in markets,” Dalio said, adding that while the situation does not perfectly match 1929 or 1999, the indicators he tracks show the US is closing in fast.

“The picture is pretty clear,” he said. “But we don’t have the pricking of the bubble yet.”

And, crucially: “A lot can go up before the bubble bursts.”

Dalio’s comments landed just as Nvidia reported one of the most astonishing quarters in corporate history.

The chipmaker announced a staggering $57 billion in revenue in the third quarter, up 22% from the prior quarter and 62% from a year earlier, and reaffirmed it has roughly $500 billion in AI-chip demand already lined up for the rest of 2025 and 2026.

Data center revenue alone hit $51.2 billion, up 25% sequentially and 66% year over year, powered by “off-the-charts” demand for its new Blackwell GPUs.

On top of that, Nvidia issued guidance of $65 billion in revenue next quarter, plus or minus 2%, signaling that its AI spend is nowhere near rolling over.