Nvidia (NVDA) stock fell along with the broader market on Thursday, despite the chipmaker posting better-than-expected third quarter earnings and providing a strong outlook for the current quarter a day earlier. Shares of Nvidia closed out the trading day down 3.15% after briefly turning higher at the start of the day. The company's "Magnificent Seven" compatriots also fell on the day. For the fourth quarter, Nvidia projects revenue of $65 billion plus or minus 2%. Wall Street was expecting revenue of $6 ...

In this articleNVDAwatch nowNvidia on Wednesday reported fiscal third-quarter earnings that beat expectations, and provided a strong forecast for the current quarter.Wall Street welcomed the report, and Nvidia stock rose after the release and during the conference call. Other stocks in the so-called artificial intelligence trade also saw a boost.A closer look at Nvidia's report shows that it continues to dominate the market for AI chips called GPUs, and CEO Jensen Huang sounded confident in the company's pr ...

NVIDIA Corporation (NASDAQ:NVDA) is one of the 15 Best Aggressive Growth Stocks to Buy Right Now. On November 7, Reuters reported that NVIDIA Corporation’s (NASDAQ:NVDA) CEO Jensen Huang stated that there are no active talks about selling the company’s latest Blackwell AI chips to China. The Trump administration has stopped these chips from being sold to China because of concerns that they could help the Chinese AI industry and military. The US has permitted NVIDIA Corporation (NASDAQ:NVDA) to sell its H2 ...

Nvidia (NVDA) stock jumped after the chipmaker reported its third quarter earnings on Wednesday, beating analysts' estimates on the top and bottom lines and offering a better-than-anticipated outlook. For the fourth quarter, Nvidia projects revenue of $65 billion plus or minus 2%. Wall Street was expecting revenue of $62 billion. “Blackwell sales are off the charts, and cloud GPUs are sold out,” CEO Jensen Huang said in a statement. “We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fa ...

Nvidia (NVDA) stock jumped after the chipmaker reported its third quarter earnings on Wednesday, beating analysts' estimates on the top and bottom lines and offering a better-than-anticipated outlook. For the fourth quarter, Nvidia projects revenue of $65 billion plus or minus 2%. Wall Street was expecting revenue of $62 billion. “Blackwell sales are off the charts, and cloud GPUs are sold out,” CEO Jensen Huang said in a statement. “We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fa ...

Core Viewpoint - Nvidia is positioned as the leading player in the AI chip market, with significant expectations for its upcoming earnings report, but faces challenges from export restrictions and market skepticism [3][4][5][8][10]. Financial Performance - Nvidia has consistently outperformed Wall Street earnings estimates, achieving a 90% beat rate over the past five years, but has averaged only a 6.5% beat in the last four quarters [4][5]. - Wall Street forecasts Nvidia's Q3 revenue at $54.83 billion, reflecting a 56% year-over-year growth, driven primarily by data center demand [4][5][6]. - Adjusted earnings per share are expected to be $1.25, representing a 54% increase year-over-year [5][6]. Market Dynamics - Nvidia's dominance in the AI ecosystem is bolstered by its role as the primary supplier of GPUs for training large language models, with significant demand from major players like Microsoft and Meta [6]. - The company's data center revenue reached record levels in the previous quarter, supported by new chip ramp-ups and partnerships [6]. - Nvidia's Omniverse platform is gaining traction in various industries, contributing to diversified revenue streams [6]. Challenges and Risks - Ongoing export restrictions prevent Nvidia from generating revenue from H20 chip sales to China, which could significantly impact potential revenue [4][8]. - Market skepticism is heightened by hedge fund manager Michael Burry's bearish stance on Nvidia, which contributed to a 7.2% drop in its stock price [9]. - Competition from Advanced Micro Devices and potential supply chain issues could further pressure Nvidia's margins and future guidance [9]. Investor Sentiment - Investors are closely monitoring Nvidia's upcoming earnings report, with heightened expectations and "whisper numbers" suggesting the need for a substantial surprise to avoid disappointment [5][10]. - The stock has seen a decline of 12% from its all-time high, indicating potential volatility post-earnings announcement [10].

Core Viewpoint - AMD's recent earnings report showed a strong performance, but investors are still looking for tangible results from its AI chip business, particularly in light of challenges in China and the overall AI market [1][2]. Financial Performance - AMD reported a top and bottom line beat for the quarter, with strong guidance provided [1][2]. - Despite the positive earnings, there are concerns regarding the profitability of AI shipments and overall revenue guidance [5]. AI Business Developments - The company has not yet seen significant revenue from its AI chip business, with analysts questioning the impact of major AI deals during the earnings call [2]. - AMD has received some licenses for its Instant Instinct series, which may allow revenue to start flowing from AI chip sales in China, potentially giving AMD a competitive edge over Nvidia [3]. Market Challenges - AMD faces export restrictions that could result in a loss of $1.5 billion in revenue this year [2]. - The Chinese government is enforcing stricter regulations, compelling state-backed data centers to utilize domestic AI chips and remove foreign hardware, which impacts both AMD and Nvidia [4].

Core Insights - Nvidia has become the first company in history to achieve a $5 trillion market capitalization, surpassing Microsoft and Apple, which are valued at approximately $4 trillion [1] Group 1: Market Performance - Nvidia's shares surged over 3% in early trading, contributing to its historic market capitalization milestone [1] - The company has secured over $500 billion in orders for its AI chips through the end of 2026, providing unprecedented visibility into future revenue [2][3] Group 2: Product Development and Manufacturing - CEO Jensen Huang announced that Nvidia is in full production of its Blackwell GPUs at a facility in Arizona, aligning with U.S. manufacturing initiatives [6] - The company has shipped 6 million Blackwell chips over the past four quarters and anticipates delivering an additional 14 million units in the next five quarters [6] Group 3: Market Challenges and Opportunities - Nvidia's market share in China has plummeted from 95% to zero due to U.S. export controls and Chinese government restrictions, resulting in a significant revenue loss [4] - The company reported only $2.8 billion in revenue from China in the most recent quarter, down from $15.5 billion in the prior period [4] - Discussions between President Trump and Chinese President Xi Jinping regarding Nvidia's Blackwell chip could potentially open up access to the Chinese market [4]

Core Insights - Nvidia reported a significant revenue increase of 56% year-over-year for its fiscal 2026 second quarter, with AI platform sales growing by 17% from the previous quarter [1] - Despite strong earnings, Nvidia's stock only rose about 2% post-report, as investors had already anticipated the positive results, leading to a nearly 20% increase in stock price prior to the earnings announcement [2] - Nvidia is expected to report its fiscal third-quarter results on Nov. 19, with management guiding for approximately 15% sequential growth and 54% year-over-year sales growth, excluding potential H20 chip shipments to China [4] Investment Considerations - Investors should remain attentive to Nvidia's performance, as the company has consistently delivered impressive growth rates, which may lead to significant cash flow that could benefit shareholders through buybacks, dividends, or share price appreciation [5] - The upcoming earnings report could present a short-term buying opportunity, as historical trends suggest that stock prices may rise as the report date approaches [3][6] - Nvidia's growth story is supported by real revenues and cash flow, making it a compelling long-term investment despite high expectations [6]

Economic and Market Environment - The economic and business environment has fundamentally shifted, reshaping the investing landscape [2] - The U.S. is moving towards a model resembling state capitalism, with increased government intervention in the economy [3][4] Federal Reserve Independence - There are concerns about the erosion of Federal Reserve independence due to political pressures from the Trump Administration [5][6] - The Federal Reserve was designed to operate independently, managing inflation and unemployment without political influence [7] - Comparisons are made to Turkey, where political control over the central bank led to high inflation [8][9] Government and Private Sector Relations - The Trump Administration has shown a willingness to create unusual financial ties with private companies, as seen with Intel and Nvidia [10][11] - The optics of government leaders publicly criticizing companies and then investing federal funds raises concerns about a transactional model overriding traditional market considerations [11][12] Market Concentration and Risks - The S&P 500 is heavily supported by a small number of mega-cap stocks, with over 34% of the index comprised of these companies, surpassing levels seen during the dot-com bubble [14][15] - Historical precedents indicate that high market concentration can lead to significant market corrections, as seen with the Nifty Fifty and dot-com bubble [15][16] - Many companies in the S&P 500 have underperformed, with around 90% lagging behind, indicating a top-heavy market [17] Future Opportunities - Historical trends suggest that after periods of market concentration, there may be a rotation favoring neglected sectors, presenting potential investment opportunities [18] - The current economic environment necessitates deeper analysis and consideration of how government policies impact business viability [28][29] Company-Specific Developments - Novo Nordisk is expanding its Ozempic product into new markets, testing it for conditions like Alzheimer's and Dementia [34] - Airbnb is evolving its platform beyond accommodations, aiming to become a versatile service for various user needs [34] - Google has avoided severe penalties in its U.S. antitrust case, maintaining its market position and seeing a positive stock reaction [34] - Rivian's CEO is actively discussing the impact of AI and EV-related policy changes on the company's future [34] - Valaris Limited is focusing on a value-driven approach to capital allocation, as discussed in their recent conference presentation [34]