Jensen Huang attends a reception for the 2025 Queen Elizabeth Prize for Engineering, at St James’ Palace in London, Brirain, Nov. 5, 2025.
Yui Mok | Through Reuters
Nvidia CEO Jensen Huang revealed in October that his firm has $500 billion in orders, in 2025 and 2026 mixed, for its chips which can be on the coronary heart of the substitute intelligence growth.
For an organization that has seen its quarterly income develop almost 600% over the previous 4 years, Huang’s assertion was an indication that Nvidia is assured of one other yr of robust — however slowing — progress for its subsequent cycle of chips, implying that the AI growth nonetheless has room to run.
“That is how a lot enterprise is on the books. Half a trillion {dollars} price up to now,” Huang stated on the firm’s GTC convention in Washington.
Huang included 2025 income up to now, gross sales of Nvidia’s present Blackwell graphics processing models and subsequent yr’s Rubin GPUs and likewise associated components like networking. After parsing by means of the small print of Huang’s remarks, analysts concluded that the assertion signaled a meaningfully larger yr by income in 2026 than Wall Road had beforehand anticipated.
“NVDA’s disclosures recommend clear upside to present consensus estimates,” wrote Wolfe Analysis analyst Chris Caso in a November word. Caso estimated that Huang’s information level advised information heart gross sales that could possibly be $60 billion over prior calendar 2026 estimates. He has the equal of a purchase score on the inventory.
However Nvidia inventory is buying and selling 5% below the place it was when Huang known as the corporate’s shot on Oct. 28.
It is a reflection of the continued debate amongst traders concerning the AI growth, and whether or not a handful of massive cloud corporations known as hyperscalers and AI labs are overspending on infrastructure.
When Nvidia experiences third-quarter earnings on Wednesday, analysts polled by LSEG expect $1.25 in earnings per share on $54.9 billion of gross sales, which might be a 56% enhance on a year-over-year foundation. They’re additionally searching for steerage within the January quarter of $61.44 billion, which might point out a reacceleration of progress.
Nvidia does not present a couple of quarter of forward-looking steerage at earnings. However something Huang says concerning the firm’s gross sales backlog and outlook for calendar 2026 might be scrutinized not only for Nvidia’s outlook but additionally that of the broader tech business. Analysts polled by LSEG at the moment anticipate $286.7 billion in gross sales for Nvidia in 2026.
‘Insatiable AI urge for food’
On the Washington convention, Huang stated the corporate has “visibility” into that income. That is not shocking — Nvidia counts almost each multitrillion-dollar tech firm as a buyer, together with Google, Amazon, Microsoft and Meta.
Throughout October earnings, all of these corporations stated they had been boosting their capital expenditure spending on synthetic intelligence infrastructure, which implies Nvidia chips.
Hyperscalers’ rising capex displays “insatiable AI urge for food,” wrote Oppenheimer analyst Rick Schafer in a word earlier this month. He has a purchase score on Nvidia inventory.
Nvidia has additionally been an aggressive dealmaker in the course of the quarter, and analysts will wish to hear from Huang concerning the particulars of those partnerships.
The largest deal was Nvidia agreeing to take a position as much as $10 billion in OpenAI fairness in alternate for the AI startup shopping for between 4 million and 5 million GPUs over a interval of years. Nvidia additionally agreed to take a position $5 billion in former rival Intel. That deal would see the 2 chipmakers staff as much as allow Intel chips to work higher with Nvidia GPUs.
Nvidia introduced in late October it took a $1 billion stake in Nokia to staff as much as combine its GPUs into mobile community {hardware} of the Finnish firm. Nvidia additionally continued investing in numerous startups.
Citi analyst Atif Malik stated in a November word that the take care of OpenAI, specifically, might be an investor give attention to Wednesday.
“Though considerations across the mixture of debt and round financing round AI capex froth exist, we essentially see AI provide under demand,” Malik wrote. He has the equal of a purchase score on the inventory.
Nvidia has greater than 90% of the marketplace for AI GPUs. However a few of its clients — together with Amazon with its Tranium chips, Google with its TPU chips and OpenAI with forthcoming chips made in partnership with Broadcom — have promoted their customized semiconductors, application-specific built-in circuits, or ASICs, more and more over the previous three months.
Huang typically speaks usually about Nvidia’s views on earnings calls with analysts and will elaborate about how the corporate sees rising competitors, which traders would welcome, in accordance with Citi.
All of those projections are with none China gross sales. The corporate’s Chinese language-oriented chip, known as the H20, was successfully restricted from being exported earlier this yr earlier than Huang made a take care of President Donald Trump in August to get export licenses in alternate for the federal government getting 15% of China gross sales.
However since then, Nvidia representatives have made gloomy feedback about the potential for vital gross sales to China, and the corporate hasn’t introduced a successor chip to the H20, which is getting outdated by AI chip requirements. Schafer, the Oppenheimer analyst, stated he believes China may symbolize an over $50 billion annual income alternative.
When requested by CNBC in late October whether or not he desires to promote present Blackwell-generation chips to China, Huang stated: “I hope so. However that is a choice for President Trump to make.”
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