🚀 Nvidia announces $500B in sales

In partnership with

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Nvidia CEO Jensen Huang stunned investors by revealing that the company has secured unprecedented $500 billion in chip orders for 2025 and 2026, a signal that the AI boom shows no sign of slowing, even as growth begins to normalize. Analysts say the disclosure points to dramatically higher 2026 sales than Wall Street had forecast, though Nvidia’s stock has slipped 5% since Huang’s October remarks as investors debate whether hyperscalers are overshooting on AI infrastructure spending. Wednesday’s earnings will put these tensions to the test, with expectations of $54.9 billion in Q3 revenue and intense scrutiny on Huang’s comments about the pipeline — especially after Nvidia inked multibillion-dollar deals with OpenAI, Intel, and Nokia that deepen its dominance in AI GPUs. Yet rising competition from custom chips and ongoing uncertainty around China sales, which could represent a $50 billion annual opportunity, leaves open questions about how long Nvidia can maintain its more than 90% market share.

2. Top Trump economic adviser Kevin Hassett said AI may be creating a “quiet time in the labour market” as companies boost productivity enough to slow hiring, particularly for new graduates, even as output and GDP stay strong. He argued the effect will be temporary, predicting that rising income and output will spur new spending and rebalance demand for workers. Hassett’s comments mark a rare acknowledgment from the Trump administration that AI could soften job growth, even as the White House continues pushing aggressive deregulation and infrastructure investment to accelerate the industry. He also disputed Trump’s claims that grocery prices have fallen, saying costs have barely moved during the president’s second term — though purchasing power has improved — and blamed lingering affordability pressures on the prior administration’s policies.

3. Veteran investor Jeffrey Gundlach warned that markets are showing some of the “least healthy” conditions of his career, urging investors to hold roughly 20% of their portfolios in cash as protection against what he sees as extreme overpricing in stocks, especially AI-linked and data-center plays. He highlighted “garbage loans” and rapid growth in the $1.7 trillion private-credit market as the most significant looming risk, comparing today’s lending practices to the subprime mortgage buildup before 2008 and pointing to recent corporate failures as early red flags. Gundlach criticized the push to sell private-credit products to retail investors, arguing that the promise of easy withdrawals doesn’t match the illiquid assets underlying them and could force funds into damaging fire sales. While he still favours gold, he’s trimmed his recommended allocation to 15% from 25%, citing persistent inflationary pressures tied to import tariffs.

   Headlines

   1. Peter Thiel has sold his Nvidia shares and scaled back his Tesla investment.

   2. Take-Two’s CEO believes that console gaming will remain despite a growing trend towards PC gaming.