Name: Nvidia's quarterly results are seen as a test for the AI hype and the technology industry | DW News
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For months, we've been hearing about the threat of an AI bubble ready to burst, with investors fearing that the artificial intelligence boom could soon go pop.

Well, much then was riding this week on the US tech firm Nvidia, the world's most valuable company and the release of its latest quarterly results.

And for many, it was worth the wait, with the chipmaker posting more record breaking figures.

Investors are cheering Nvidia's forecast beating results.

Stocks soared on tech heavy markets from Japan to South Korea and Taiwan.

European markets followed suit and ended a five day losing streak.

Nvidia's earnings underscored surging demand for its AI chips that has pushed aside talk of an AI bubble.

The world stock markets are delighted with Nvidia's results.

These figures from Nvidia were eagerly awaited worldwide.

And now once again, positive news has been announced.

Nvidia again exceeded the expectations of all analysts and the market and as a result, it's a happy hour for now.

The chip giant posted a net profit of 30, $32 billion in the third quarter.

Nvidia CEO Jensen Huang says computing will evolve as AI becomes part of everyday life and enables everyone to be a programmer.

Software is going to be generated in real time.

It's generative, based on the context, based on the circumstance, based on who you are, based on the problem you asked, based on your prompt.

It will generate unique content for you every single time.

Nvidia's rise began when ChatGPT was released in 2022.

That's because the company provided much of the hardware that powers ChatGPT.

Since then, Nvidia's market value has surged tenfold and made it the world's biggest publicly traded company.

Its chips are used in some of the latest technologies, from medical devices that detect skin cancer early to self driving cars.

But some analysts are now warning chip buyers not to pin their hopes on Nvidia.

Ultimately, Nvidia will be able to benefit from investments.

But there are growing doubts whether the buyers of these chips will actually monetize artificial intelligence.

Because the expectation to benefit from AI is very high, which is why there will always be talk of a bubble.

For the last three months of 2025, Nvidia expects revenue to rise around 20% to $65 billion.

the question whether this boom will be followed by a bust remains.

He's a research fellow at the Carnegie Endowment for International Peace where he focuses on technology and international affairs.

Nvidia's earnings this week stunned even the most optimistic forecast.

What do these numbers tell you about the company's strategic importance, particularly when we're talking about high end chips?

So I think these results underscore that Nvidia enjoys this unique position in the AI market at the moment.

These chips that only Nvidia and a handful of other companies can make are really the underpinning of these extremely important models that are being rolled out across the economy, across national security applications.

And Nvidia just continues to enjoy this really privileged position in that marketplace, and

Is Nvidia, is it now functioning as a global choke point?

I mean, one company that has disproportionate influence over military power and geopolitical leverage?

I mean, is it almost too strong for its own good?

So these advanced chips that Nvidia and a handful of other companies can make really are a choke point.

Governments around the world, I mean, in particular the United States and its close allies control key parts of the semiconductor supply chain.

And that gives them a huge amount of influence and a huge amount of bargaining power when it comes to negotiations with other countries.

And the United States in particular has tried to exert control over the flow of chips, in particular trying to restrict China's access to these advanced chips.

Now, of course, China is not prepared to just sit back and let a kind of key technological input let themselves be cut off from a key technological input indefinitely.

So they're accepting huge efforts to try to build up their own competitors to Nvidia above all, for now, Nvidia really does still enjoy a pretty, pretty compelling lead in this, in this sector.

And there was a time under former US President Biden when selling these chips was basically forbidden.

And then came President Trump, his deal letting Nvidia sell chips to China as long as the US gets to take a 15% part of the revenue.

I'm wondering, does that give Washington leverage or does it expose dependence on China's market?

Yes, there's been a back and forth on this issue across the Trump administration.

The first Trump administration was one of the, was the first to introduce some of these chip controls.

The Biden administration then tightened them and expanded them, trying to restrict China's access to advance computing power.

Now, in the second Trump term, there has been a little bit of a back and forth initially signal that he would allow the Sale of some Nvidia chips, The so called H20 chip, as long as the treasury could get a cut of the revenue that ended up not really materializing, media hasn't reported selling significant numbers of those chips to China.

Nvidia wants access to the Chinese market.

They want to be able to sell their chips to China to earn billions of dollars of revenue and they want to keep China hooked on the US tech stack.

But at the same time, allowing those sales of chips to go forward would turbocharge China's sector.

Because for now, video really is the kind of key player if you want access to these chips.

I mean, what do US Allies think when Washington pressures them not to sell sensitive technology to China?

Yet President Trump green lights Nvidia sells to China.

As long as the Department of Treasury gets a nice 15% kickback, sure.

It sends mixed messages to US allies, that's for sure.

The administration on the one hand wants to pressure its allies to get in line with the US Export control policies, restrict sales in particular of semiconductor manufacturing equipment to China.

The administration has always, the United States has always said that these are kind of core national security concerns and that's why you should get in line with them.

On the other hand, if then signals that they're actually up for negotiation, perhaps as part of broader trade talks or perhaps in exchange for a cut of the revenues, then it sort of undercuts this argument that these are a kind of core national security technology that shouldn't be negotiated over.

And that sends pretty, pretty mixed messages to allies that the US is trying to persuade to come along with them on this.

And I'm wondering how that's connected then to what we've seen this week with this peace plan for Ukraine.

You know, the Europeans, the Ukrainians, they've been bypassed by this.

It looks a little bit like what American allies must be thinking when they look at Nvidia sales going to China.

Yeah, I'd say there's a kind of recurring tension here, which is that the administration wants to flex its muscles unilaterally.

It wants to cajole and kind of coerce allies to fall in line.

But at the same time, its policy is hard to predict.

In particular, some of these technological issue areas.

It seems to be motivated by different impulses and that can be a little bit frustrating, I think, for some allies to discern the strategic intent behind these policies.

Yeah, a little bit like do as we say not as we do.

Sam Winter Levy from the Carnegie Endowment for International Peace.

And we appreciate your time and your insights tonight.