Nvidia Earnings: Key Highlights — Bubble Concerns, Massive Forecasts, and Weak China Demand
Nvidia released its fiscal third-quarter results on Wednesday, beating expectations and offering an optimistic outlook for the next quarter. Investors reacted positively, pushing Nvidia shares higher after the announcement. Other stocks tied to the AI industry also saw gains. The report shows Nvidia’s continued dominance in the market for AI-focused GPUs. CEO Jensen Huang remained confident during the earnings call, highlighting strong demand and long-term growth opportunities. For the current quarter, Nvidia expects revenue of around $65 billion**, representing 65% year-over-year growth**. Below are the major takeaways from the earnings update: --- 1. Nvidia Dismisses AI Bubble Worries During the earnings call, Huang directly addressed investor fears that the surge in spending on AI chips may be unsustainable. He argued that what’s happening in the AI sector is far from a bubble. According to him, three major trends are fueling AI infrastructure investments: * Traditional...