Nvidia earnings takeaways: Bubble talk, 'half a trillion' forecast and China orders

Core Insights - Nvidia reported fiscal third-quarter earnings that exceeded expectations and provided a strong forecast for the current quarter, leading to a rise in its stock and boosting other AI-related stocks [3][4] - The company expects approximately $65 billion in sales for the current quarter, representing a 65% year-over-year growth [4] Group 1: Market Position and Outlook - Nvidia continues to dominate the AI chip market, particularly in GPUs, with CEO Jensen Huang expressing confidence in the company's products and future outlook during the earnings call [4][5] - Huang rejected the notion of an "AI bubble," stating that there are three growing uses for AI that are driving infrastructure investments [5][6] - The company maintains a forecast of $500 billion in AI chip orders for 2025 and 2026, with the order backlog expected to grow due to recent deals [8][9] Group 2: China Market Dynamics - Nvidia's sales of the H20 chip to China were reported as "insignificant," with only $50 million recorded during the quarter, attributed to geopolitical issues and competition in the Chinese market [11][12] - The company is advocating for the ability to export more advanced chips to China, arguing it is better for national security [13][14] - Analysts noted that the lack of sales in China made Nvidia's overall performance even more remarkable, projecting nearly $400 billion in free cash flow over the next nine quarters [15]