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2025-11-17T15:14:41.394Z
Nvidia earnings: Harbinger of an AI bubble or proof the boom is real?
Ahead of Nvidia’s earnings this week, Wall Street is worried that there’s an AI bubble. In recent weeks, the sector has suffered from a spike in volatility.
According to Neil Azous, portfolio manager of Strategy Shares’ Monopoly ETF (MPLY), the concerns may be overblown.
“For those worried about ‘bubble’ talk, the stock is already down heading into earnings, and historically every dip in Nvidia has proven profitable. The asymmetry — one day or seven days after earnings — has favored the upside. Betting against the most important company in the world, with the resources it has, has generally been a losing trade. Taken together, these factors could alleviate many current concerns,” says Azous.
Brian Stutland, portfolio manager of the Rational Equity Armor Fund and the Catalyst Nasdaq-100 Hedged Equity Fund, agrees.
“The key is whether Nvidia continues hitting the targets analysts expect. Its forward price-to-earnings (P/E) ratio is around 31, which isn’t extreme. This isn’t like the late-’90s tech bubble, when major players traded at forward P/Es of 40 or 45,” says Stutland.
He adds that Nvidia’s valuation is reasonable and the company’s growth helps justify it. “I’m not convinced we’re at the tail end of a bubble. It would likely take a major catalyst to push the market significantly higher than expected, followed by a shakeout. As long as Nvidia delivers clarity through earnings and meets its growth targets, the higher multiples are justified, though there will still be volatility along the way.”
Regardless, Nvidia is the clear bellwether. And even if there are a few small cracks in its growth story, it seems likely that the talk about the AI bubble will not go away.
– Tom Taulli
Tom Taulli
Kiplinger contributor
Tom Taulli has been developing software since the 1980s. He sold his applications to a variety of publications. In college, he started his first company, which focused on the development of e-learning systems. He would go on to create other companies as well, including Hypermart.net that was sold to InfoSpace in 1996. Along the way, Tom has written columns for online publications such as Bloomberg, Forbes, Barron’s and Kiplinger. He has also written a variety of books, including Artificial Intelligence Basics: A Non-Technical Introduction.
2025-11-17T14:57:19.397Z
Can Nvidia earnings reignite the AI flame?
That’s the question Matt Britzman, senior equity analyst at Hargreaves Lansdown, is asking.
“For the first time in several quarters, Nvidia enters earnings with sentiment under pressure. Shares have softened on concerns of an AI bubble and the reality that China sales are unlikely to rebound soon.”
However, Britzman says the overarching picture for Nvidia “remains strong” and he believes third-quarter revenue will come in near the top end of guidance, “at around $55 billion – and scope for an upside surprise.”
He believes market participants will be watching fourth-quarter guidance and any color for the year ahead.
“CEO Jensen Huang recently flagged $500 billion worth of orders on the books, and investors will be keen for clarity on timing, which could imply material upside to current forecasts. With plenty of nervousness in the air, strong results from Nvidia could be the perfect catalyst to reignite the AI flame,” says Britzman.
– Karee Venema
2025-11-17T14:50:24.570Z
Nvidia stock opens lower to start earnings week
Nvidia stock opened lower Monday morning, down 0.9% at last check. The chip stock is down more than 7% for the month to date, but has still gained nearly 42% since the start of the year.
This comes as the broader equities market trades cautiously higher at the start of the week, with the blue-chip Dow Jones Industrial Average up 0.04%, the broader S&P 500 0.1% higher and the tech-heavy Nasdaq Composite enjoying a 0.2% lead.
– Karee Venema
Karee Venema
Senior investing editor, Kiplinger.com
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021, and oversees a wide range of investing coverage, including content focused on equities, fixed income, mutual funds, ETFs, macroeconomics and more.
