NVIDIA Earnings Summary: AI Bubble Popping?
$NVIDIA (NVDA.US)$ dropped another ridiculously strong quarter, but the market wasn’t impressed. The stock jumped at the start, then gave it all back as AI bubble worries crept in again.
Here’s a summary for you:
– Revenue: $57 bil (up 62% y-o-y)
– Data center revenue: $51.2 bil
– Profit: $31.9 bil (about $1.30 per share)
– Next quarter revenue guide: $65 bil
– China AI chip sales: only $50 million
– Jensen’s long term expectation: around $500 bil in AI chip orders over 2025-2026
Jensen is still talking about $500 bil worth of AI chip orders coming over the next few quarters, and the CFO even hinted the number could go higher.
Despite all that, sentiment stayed weak because everyone is still debating whether AI spending is sustainable. Jensen says no bubble from Nvidia’s point of view - demand is coming from traditional software shifting to GPUs, new AI apps, and “agentic AI” that runs on its own. Meanwhile big funds, hedge fund legends and even tech giants are rotating money around, adding to the bubble talk.
One big detail: China sales are basically zero due to US rules, yet Nvidia still crushed earnings. That impresses bulls, but also raises the question - how long can this level of capex last when the macro picture (Fed, jobs data, inflation) is still shaky?
Personally, Nvidia’s fundamentals remain rock solid, but the sentiment side of the trade is where things get noisy. The bigger question is whether the AI supercycle still has legs, or if the market needs a breather.
What do you think - is Nvidia still in the early innings, or are we starting to see signs of an AI bubble? How are you positioning around this?
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106172460 : Is the market not buying it, or is it manipulation by Wall Street? Is this how analysts write their articles?
104573913u3dhxut7joF : havent popped yet meh?
Blanc1208 104573913u3dhxut7joF : If the market really popped you would see a 50% drop in prices like back in 2008....... it would really be game over, back to recession or maybe depression