Nvidia Results Fuel Relief Rally as Valuation, Policy Risks Loom

Watch Nvidia Results Fuel Relief Rally as Valuation, Policy Risks Loom - Bloomberg on Dailymotion

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00:00NVIDIA deflating the AI bubble fears, at least for now, with blowout earnings in the third quarter

00:06and a forecast of incredible revenue strength in the fourth quarter. 65 billion US dollars is what

00:13they forecast. And they are projecting in the quarters ahead revenues and sales of more than

00:18half a trillion dollars. Valuations, though, are a key concern still for investors. This is a company

00:25trading at more than 40 times its forward earnings. And then analysts as well questioning to what extent

00:32the spend on these AI chips is really going to be justified in terms of the monetization at the

00:39other end, the consumer and customer demand. That has to really increase. Next year is the view from

00:46our own in-house analysts at Bloomberg Intelligence. The end of 2026, if you don't get a clear and

00:51convincing answer that hyperscalers and other AI leaders can really monetize this technology,

00:59that's when investors could really start to question this AI bull run. But for now,

01:05NVIDIA breathing life back in to that momentum trade.