Nvidia(US:NVDA) Hua Er Jie Jian Wen·2025-11-20 21:20Core Viewpoint - Nvidia's recent earnings report exceeded market expectations, but concerns about an AI bubble persist, leading to stock price fluctuations despite strong performance indicators [4][8]. Group 1: Earnings Performance - Nvidia reported a 62% year-over-year increase in revenue, reaching $57.01 billion, and provided a strong revenue guidance of approximately $65 billion for the fourth quarter, significantly above market expectations [4][8]. - The CEO, Jensen Huang, indicated that sales from the Blackwell and Rubin product lines alone could reach $500 billion in overseas markets over the next six fiscal quarters [4]. Group 2: Market Reactions - Following the earnings announcement, stocks related to the AI ecosystem, including AMD and Broadcom, initially rose but later fell in line with broader market trends [2]. - Despite the positive earnings report, Nvidia's stock experienced a reversal, dropping after an initial 5% increase post-announcement [8]. Group 3: AI Bubble Concerns - Analysts express skepticism regarding the sustainability of capital expenditures in the AI sector, with concerns that significant investments may not yield returns in the long term [9]. - Historical comparisons are drawn to the internet bubble, where Cisco, despite strong growth, faced a dramatic decline post-bubble burst, highlighting the risks associated with high valuations [9]. Group 4: Strategic Investments - Nvidia has engaged in substantial investments in AI companies, such as a $100 billion investment in OpenAI for data center and AI infrastructure development, raising questions about potential "circular financing" risks [5][9]. - Huang defended these investments as strategic partnerships aimed at deepening technological collaboration rather than merely facilitating sales of Nvidia chips [4][5].