Breakfast News: Huang Rejects AI Bubble
November 20, 2025
| Wednesday's Markets |
|---|
| S&P 500 6,642 (+0.38%) |
| Nasdaq 22,564 (+0.59%) |
| Dow 46,139 (+0.10%) |
| Bitcoin $90,392 (-2.26%) |
1. Nvidia Soars 5% on Upbeat Outlook
Nvidia (NVDA +2.92%) jumped over 5% after the closing bell following quarterly results, as CEO Jensen Huang downplayed any notion of an AI bubble forming and CFO Colette Kress said revenue could exceed $500 billion in coming quarters.
- "We excel at every phase of AI, from pre-training and post-training to inference": Huang outlined how a new wave of applications coming from agentic AI systems and related products should enable Nvidia to continue to grow, as revenue guidance for the coming quarter was raised to $65 billion.
- "We believe Nvidia will be the superior choice for the $3 to $4 trillion in annual AI infrastructure built": Kress identified data center demand as a key growth area that continues to exceed their expectations, along with robotics, but said she was disappointed in not being able to sell advanced chips to China.
2. AI Stocks Rally on Trade, NVDA Beat
S&P 500 futures rose over 1% with Nasdaq futures up closer to 1.5% this morning, as positive sentiment around Nvidia earnings helped to lift semiconductor stocks, with Stock Advisor recommendation Advanced Micro Devices (AMD 2.93%) up over 4%.
- WSJ reports the U.S. has approved a deal to sell 70,000 advanced AI chips to Middle East nations: President Trump reversed his stance from earlier this year as he agreed to allow U.S. companies such as AMD to sell specific chips to Abu Dhabi and Saudi state-backed enterprises.
- "Another incredible performance from Nvidia when many of us were looking at this quarter with one eye closed": Motley Fool chief investment officer Andy Cross pointed out "what's pretty incredible is that they delivered that sales growth with China/HK sales down 63%."
3. BBB & PANW Fall, With Fed Minutes in Focus
Rule Breakers rec BBB Foods (TBBB +4.52%) dropped over 3% following the closing bell after reporting a quarterly loss greater than anticipated, with management focusing on investing in store openings and boosting the talent base.
- Superscore of 73 in our Rule Breakers Primary database: Palo Alto Networks (PANW 0.55%) is down almost 4% in pre-market trading as results failed to live up to investor expectations, even as the company announced it is acquiring Chronosphere for $3.35 billion.
- Fed minutes indicate uncertainty around December policy meeting: Minutes released from the October Federal Reserve meeting showed members disagreed on what action could be taken in December, with "many participants" saying it would likely be appropriate to keep rates unchanged.
4. WMT, INTU, VEEV Lead Thursday Earnings
Walmart (WMT 0.84%) reports ahead of the opening bell, with investors keen to observe if the momentum from last quarter can be continued, as it continues to balance both U.S. and international growth plans.
- Beaten earnings estimates every time for the past two years: Intuit (INTU +0.14%) should post earnings after the market closes. Metrics including subscription numbers and further AI integrations for QuickBooks and TurboTax will be closely watched.
- Ten straight quarters of total revenue growth: Veeva Systems (VEEV 0.19%) also reports after regular market hours as management pushes for higher customer adoption of the Vault CRM product that helped to grow earnings last quarter.
5. Your Take
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