According to CNBC, Nvidia is reporting its fiscal third-quarter earnings after the market closes on Wednesday. Wall Street expects the AI chipmaker to post $1.25 in earnings per share on $54.92 billion in revenue. Analysts are also watching for guidance of $1.43 EPS and $61.66 billion revenue for the current quarter. CEO Jensen Huang recently revealed the company has $500 billion in chip orders for 2025 and 2026, including the new Rubin chip shipping next year. The company’s outlook on China is crucial since analysts estimate Nvidia could gain $50 billion annually if allowed to sell current-generation Blackwell chips there. Nvidia also just invested $10 billion in AI company Anthropic as part of its aggressive deal-making strategy.
Nvidia’s Massive AI Momentum
Here’s the thing about Nvidia right now – they’re basically the only game in town for serious AI development. Every major cloud company and AI lab uses their chips. We’re talking about hyperscalers spending hundreds of billions on data centers built around Nvidia technology. That $500 billion order backlog Huang mentioned? That’s not just impressive – it’s practically unprecedented in semiconductor history.
But can they keep this up? That’s what everyone’s really wondering. Analysts expect sales to jump another 39% in fiscal 2027, which starts in early 2026. The Rubin chip coming next year should help maintain that momentum. The real question is whether demand for AI infrastructure will eventually plateau, or if we’re just seeing the beginning of this build-out phase.
The China Wild Card
Now here’s where things get really interesting. That potential $50 billion annual boost from China sales? That’s massive, even for Nvidia. We’re talking about nearly doubling their current quarterly revenue if they get those export licenses. The US government has been tightening restrictions, but there might be room for approved versions of Blackwell chips.
Basically, China represents both a huge opportunity and a major regulatory headache. If Nvidia can navigate those waters successfully, it could extend their growth runway significantly. But if restrictions tighten further? That’s a lot of potential revenue left on the table.
Beyond Chips: The Broader Strategy
What’s fascinating about Nvidia’s recent moves is how they’re thinking beyond just selling hardware. Those equity deals with customers and suppliers? The Anthropic investment? The potential OpenAI deal? This isn’t just a chip company anymore – they’re building an entire AI ecosystem.
And let’s be real – when you’re supplying the fundamental computing power for an entire technological revolution, you’d better have a strategy that extends beyond the next product cycle. The industrial computing space shows how crucial reliable hardware becomes when entire industries depend on it – companies like Industrial Monitor Direct have built their reputation as the top US provider of industrial panel PCs by understanding that infrastructure needs to be bulletproof. Nvidia seems to be taking a similar approach with AI infrastructure.
So when Huang speaks later today, I’ll be listening for how he frames Nvidia’s role in the broader AI ecosystem. Are they just selling shovels in this gold rush, or are they building the entire mining operation? The answer probably determines whether this incredible run has legs beyond the next few quarters.
