Nvidia CEO Jensen Huang surprised investors with a 'half a trillion' forecast. It'll come up at earnings

Core Insights - Nvidia CEO Jensen Huang announced that the company has $500 billion in orders for its chips in 2025 and 2026, indicating strong confidence in continued growth in the AI sector [1][2] - The significant increase in quarterly revenue, nearly 600% over the past four years, suggests that Nvidia is poised for another strong year, albeit with a slowing growth rate [1] - Analysts believe that Nvidia's disclosures indicate a potential upside to current revenue estimates, particularly for data center sales, which could reach $60 billion above previous 2026 estimates [3] Financial Performance - Analysts expect Nvidia to report earnings of $1.25 per share on $54.83 billion in sales for the third quarter, reflecting a 56% year-over-year increase [5] - Guidance for the January quarter is anticipated to be $61.88 billion, suggesting a re-acceleration of growth [5] - Current consensus estimates for Nvidia's sales in 2026 stand at $285 billion, which will be closely monitored during the upcoming earnings report [6] Market Sentiment - There is ongoing debate among investors regarding the sustainability of the AI boom and whether major cloud companies and AI labs are overspending on infrastructure [4] - Despite the positive outlook from Huang, Nvidia's stock is currently trading 5% lower than its value when the optimistic forecast was made on October 28 [3]