BusinessLine·2025-11-20 10:34Core Insights - Nvidia Corp. provided a strong revenue forecast of approximately $65 billion for the January quarter, exceeding analyst expectations by about $3 billion, and indicated that a potential revenue bonanza of half a trillion dollars may be larger than anticipated [1][2] - The company’s CEO, Jensen Huang, dismissed concerns about an AI bubble, stating that demand for Nvidia's AI accelerators remains robust [2][5] Financial Performance - Nvidia's third-quarter revenue rose 62% to $57 billion, surpassing analysts' estimates of $55.2 billion, with earnings of $1.30 per share compared to the expected $1.26 [7] - The data center unit generated $51.2 billion in revenue, exceeding the average estimate of $49.3 billion, while gaming PC chips brought in $4.3 billion, slightly below the expected $4.4 billion [8] Market Reaction - Following the positive outlook, Nvidia's shares increased by approximately 5.4% in early trading, contributing to a 39% gain for the year, resulting in a market value of $4.5 trillion [2][3] - Related stocks, such as CoreWeave Inc. and Nebius Group NV, also saw significant gains, reflecting Nvidia's influence on the AI sector [3] Future Outlook - Nvidia's CEO indicated that the company could exceed the previously announced $500 billion revenue target due to ongoing demand for AI products [5][6] - The company is positioned to deliver more annual net income than competitors Intel Corp. and Advanced Micro Devices Inc. will report in sales [9] Competitive Landscape - Despite Nvidia's dominance in the AI accelerator market, competitors like AMD, Broadcom Inc., and Qualcomm Inc. are optimistic about challenging Nvidia's position [14] - Nvidia maintains over 90% market share in AI accelerator chips, bolstered by a diverse product lineup that includes networking and software solutions [17]