Company Performance - Nvidia reported fiscal third-quarter revenue of $57.01 billion, exceeding Wall Street estimates by nearly $2 billion [1][2] - The company achieved earnings per share of $1.30, surpassing the expected $1.26 [2] - The data center business, crucial for AI applications, generated $51.2 billion, showing significant growth compared to previous periods [2] Future Outlook - Nvidia's CEO Jensen Huang indicated strong ongoing demand for the Blackwell chip architecture and cloud GPUs, with products remaining sold out [3] - The company projected fiscal fourth-quarter revenue of $65 billion, exceeding analyst forecasts of $62 billion [3] Competitive Advantage - CFO Colette Kress highlighted that CUDA-powered accelerators are enhancing hardware lifespans and customer value, reinforcing Nvidia's competitive position in AI infrastructure [4] Market Position - Nvidia's market value has surpassed $5 trillion, solidifying its status as the world's most valuable company [5] - The stock has increased by 37% year-to-date and 25% over the last 12 months, with shares rising 5% following the earnings report [5] Cryptocurrency Market Reaction - Bitcoin rebounded above $91,000 after dipping below $89,000, indicating some investors view current prices as entry opportunities [6] - Major investors have shown caution towards AI stocks, with notable exits from Nvidia and SoftBank selling shares [6] Regulatory Concerns - Regulators have raised alarms about systemic risks associated with widespread AI use, with the Bank of England and IMF citing potential bubble risks [7] - A Bank of America survey revealed that 45% of fund managers consider an AI bubble the most significant market threat [7]

There's been a lot of talk about an AI bubble. From our vantage point, we see something very different. NVIDIA is unlike any other accelerator.We excel at every phase of AI from pre-training and post-training to inference. And with our two decade investment in CUDA X acceleration libraries, we are also exceptional at science and engineering simulations, computer graphics, structured data processing to classical machine learning. ...

Despite being effectively cut off from China, its sales have continued to surge on booming demand from domestic Silicon Valley giants.However, Nvidia’s shares have been rocked by US trade tensions with Beijing, with the White House imposing a series of export restrictions on Nvidia’s chip sales to China.These are being deployed in vast numbers in data centres across the US. Some of these data hubs, each of which houses tens of thousands of Nvidia’s Blackwell chips, are intended to be the size of a small cit ...

People will be calling for the AI bubble to burst every day this entire decade https://t.co/loSqjm4jKq ...

The poster child for the artificial intelligence boom reported third-quarter earnings after the closing bell, and it did not disappoint. Record sales and robust guidance drove Nvidia shares higher in after-hours trading for the AI bellwether, reassuring a market rattled by fears of an AI bubble. “There has been a lot of talk about an AI bubble,” Nvidia CEO Jensen Huang told analysts on an earnings call. “From our vantage point, we see something very different." Wall Street had anticipated another quarte ...

Fears of an AI bubble took at least a temporary breather after Nvidia (NVDA) reported an earnings beat as well as a strong fourth quarter outlook after the close of U.S. markets on Wednesday. The chipmaker topped Wall Street’s expectations for the third quarter, reporting revenue of $57.01 billion — a 62% jump from a year earlier — as the AI investment boom continues to fuel demand for its chips. "Blackwell sales are off the charts, and cloud GPUs are sold out," said CEO Jensen Huang. "Compute demand kee ...

Financial Risk & Regulation - The industry should not entertain a bailout of corporations if the AI bubble pops [1] - Healthcare is being denied to everyday Americans [1] - SNAP and food assistance is being denied to everyday Americans [1] Social Impact - Mental crises are precipitating as a result of denied assistance [1] - People are turning to AI chatbots to try to resolve mental crises [1]

Core Viewpoint - Nvidia's CEO Jensen Huang dismissed concerns about an AI bubble, highlighting the company's strong growth and demand for its chips across various sectors, including cloud computing [1][3]. Financial Performance - Nvidia reported a 62% increase in third-quarter sales, marking the first acceleration in seven quarters, with data-center sales reaching $51.2 billion, surpassing analyst expectations of $48.62 billion [6]. - The company anticipates fiscal fourth-quarter sales of $65 billion, exceeding analysts' average estimate of $61.66 billion, and expects an adjusted gross margin of 75% [5]. Market Reaction - Following the earnings report, Nvidia's shares rose by 5% in extended trading, potentially adding $220 billion in market value, while the broader market saw a decline of nearly 3% in November [4]. - The positive results also boosted shares of competitors like AMD and tech giants such as Alphabet and Microsoft [6]. Future Outlook - Nvidia has a forecast of $500 billion in bookings for its advanced chips through 2026, indicating strong future demand [3]. - The finance chief stated that the company plans to maintain gross margins in the mid-70% range during fiscal 2027 [5].

Core Viewpoint - The stock market experienced fluctuations but ended mostly higher, with major averages closing in positive territory after a volatile trading session [1] Market Performance - The Nasdaq closed up 131.38 points (0.6%) at 22,564.23, having surged by as much as 1.7% earlier [2] - The S&P 500 rose 24.84 points (0.4%) to 6,642.16, while the Dow increased by 47.03 points (0.1%) to 46,138.77 [2] - Early strength was attributed to traders buying stocks at reduced levels following recent market weakness [2] Sector News - Semiconductor stocks rebounded, with the Philadelphia Semiconductor Index climbing by 1.8% after a recent decline [7] - Gold stocks also showed strength, as indicated by a 1.2% gain in the NYSE Arca Gold Bugs Index [7] - Conversely, energy stocks fell sharply, with the NYSE Arca Oil Index declining by 1.7% due to lower crude oil prices [8] Company Focus - Nvidia's upcoming earnings report is highly anticipated, with investors closely monitoring CEO Jensen Huang's comments for insights into AI investments [4] - Nvidia's stock rose by 2.9% ahead of its third-quarter results, following a period of low closing levels [3] Federal Reserve Insights - The minutes from the Federal Reserve's recent meeting revealed differing views on future interest rate decisions, with some participants suggesting a potential rate cut while others preferred to keep rates unchanged [5][6]

This post originally appeared in the First Trade newsletter. You can sign up for Business Insider's daily markets newsletter here. No matter where you come out on the AI bubble debate, your next move will boil down to one thing: how long you're willing to wait. If you're an AI bull that believes in the productivity gains that will be unlocked, you might be OK with waiting a long time for that to materialize. Or maybe it's the opposite. You want tangible results now, and that's impacting your investm ...