Nvidia shares rise on stronger-than-expected revenue, forecast

Core Insights - Nvidia is set to report its fiscal third-quarter earnings, with Wall Street expecting earnings per share of $1.43 and revenue of $61.66 billion [1] - The company's outlook and sales backlog will be closely monitored during the earnings call [2] Group 1: Market Position and Demand - Nvidia is central to the AI boom, serving every major cloud company and AI lab as a customer [3] - Major AI labs utilize Nvidia chips for developing next-generation models, and hyperscalers are investing hundreds of billions in new data centers based on Nvidia technology [3] Group 2: Future Projections - Nvidia has reported $500 billion in chip orders for calendar years 2025 and 2026, including the upcoming Rubin chip [4] - Analysts expect Nvidia's sales to increase by 39% in fiscal 2027, which begins in early 2026 [4] Group 3: Strategic Investments - Nvidia has engaged in equity deals with various customers and suppliers, including investments in OpenAI, Nokia, and Intel [5] - Recently, Nvidia agreed to invest $10 billion into AI company Anthropic [5] Group 4: Regulatory Considerations - Nvidia management will address the potential for gaining U.S. government licenses to export its current-generation Blackwell AI chip to China [6] - Analysts suggest that Nvidia's sales could increase by up to $50 billion annually if allowed to sell current-generation chips to Chinese companies [6]