Nvidia(US:NVDA) Shang Hai Zheng Quan Bao·2025-11-20 18:27Core Insights - Nvidia reported Q3 revenue of $57 billion, a 62% year-over-year increase, and a net profit of $31.9 billion, up 65%, exceeding Wall Street expectations [2] - The company provided a revenue guidance of $65 billion for the next quarter, indicating that AI demand has not peaked [2] - Despite concerns over a potential AI valuation bubble, Nvidia's stock rose over 5% in after-hours trading following the earnings report, alleviating some market anxiety [2] Industry Analysis - Major financial institutions like JPMorgan and Goldman Sachs believe that AI demand is still growing exponentially, with supply chain bottlenecks in key hardware persisting in the short term [3][4] - The current investment cycle is characterized by cautious expansion in semiconductor and power infrastructure, with capital expenditures remaining at 50% to 60% levels, which is expected to prolong the current industry cycle until 2026 or early 2027 [5] - UBS analysts suggest that the market is still in the early stages of the tech and AI cycle, with a healthy microeconomic environment and low leverage among companies making significant investments [5] Institutional Investment Trends - In mid-November, several institutional investors reported significant reductions in their Nvidia holdings, reflecting growing concerns about an AI bubble [6] - Notable investors like Peter Thiel's fund and SoftBank completely exited their Nvidia positions, while Bridgewater reduced its holdings by 65% [6][7] - Michael Burry disclosed substantial short positions against Nvidia, indicating a bearish sentiment among some investors [7] Divergence in Investment Sentiment - The divergence in institutional sentiment regarding AI investments is primarily driven by concerns over high valuations and differing market expectations among tech companies [8] - Some investors are shifting focus from high-valuation hardware companies to application-based firms that may offer sustainable growth [9] - Berkshire Hathaway's investment in Alphabet, valued at $4.3 billion, reflects a strategic shift towards companies with long-term growth potential, despite the high valuations in the AI sector [8][9]