Nvidia(US:NVDA) Jing Ji Guan Cha Wang·2025-11-20 09:06Core Viewpoint - Nvidia's Q3 earnings report exceeded market expectations, showcasing strong revenue growth driven by AI chip demand, despite ongoing concerns about an AI bubble in the market [1][2][4]. Financial Performance - Nvidia reported Q3 revenue of $57.01 billion, a 62% year-over-year increase, surpassing the market expectation of $55.19 billion [1]. - Net profit rose 65% year-over-year to $31.91 billion, with adjusted earnings per share at $1.30, exceeding the forecast of $1.25 [1]. - The data center business, a key revenue driver, generated $51.2 billion, reflecting a 66% year-over-year growth, attributed to strong AI chip demand [1]. Future Guidance - Nvidia's Q4 revenue guidance is set between $65 billion, indicating a potential new quarterly record and a year-over-year growth of over 65% [1]. - The gross margin is expected to improve from 73.5% to 75% year-over-year [1]. Market Sentiment and Concerns - Despite strong earnings, there are rising concerns about an AI bubble, with over 60% of fund managers in a recent survey believing AI stocks are overvalued [2][3]. - Notable investors, including Masayoshi Son and Peter Thiel, have liquidated their Nvidia holdings, raising alarms about the sustainability of AI market growth [2][3]. - Michael Burry's hedge fund has taken significant short positions against Nvidia, indicating skepticism about the AI sector's future [2][3]. Industry Dynamics - Nvidia's CEO Jensen Huang emphasized the ongoing demand for AI technology, countering claims of an AI bubble and asserting that AI is at a critical juncture [4]. - The company has made substantial investments in AI, including a planned $100 billion investment in OpenAI, which will utilize Nvidia's GPUs for AI data centers [5]. - Nvidia's stock price increased over 5% post-earnings report, maintaining its position as the highest-valued company globally, with a market cap of $4.53 trillion [5].