Nov 17 (Lagos) - As Artificial Intelligence (AI) stocks gained momentum during 2025, many investors started feeling nervous about the valuations of Companies in the sector. This is due to the massive amount of money that has poured into those stocks and their stock prices have climbed up and created a worry about a so called "bubble" and its busting which would make investors lose their money.
Comparisons to the 2000 dot com era bubble are all over the place. The warnings may have reached levels which could prevent people of investing in legitimate AI Companies generating free cash flow and profits. CEO of Palantir Technologies Dr. Alex Karp recently dwelled upon this recently in an interview where he blamed "analysts" for preventing people from earning huge returns by issuing excessive warnings against investing in his Company.
Palantir Technologies reported its best quarterly earnings earlier this money but saw its stock tumble more than 20% in a few days. The reason was that a very influential short seller disclosed put options in Palantir stock and NVIDIA stock on the same day that Palantir reported its earnings.
Now all eyes are on Dr. Jensen Huang, the CEO of NVIDIA, as his Company will report its quarterly earnings on Wednesday the 19th of November 2025. NVIDIA is the most pivotal pillar of the AI trade as the Company provides the infrastructure that runs AI models. It is the backbone of the industry.
Analysts are expecting revenue of $ 54 billion for the third quarter which would represent 16% growth over its second quarter revenue of $ 46 billion. Gross margin expectations of 73.5% is also expected.
These are very high expectations but the stock is up more than 1000% since 2022 and more than 40% this year alone. We are talking about generational wealth here. People who invested more than $50,000 here say 3 years ago could be set for life and their personal portfolio's could be looking like a decent size Company operating in some emerging economy.
But the bigger question is that even of NVIDIA delivers blockbuster earnings and smashes them out of the park, will the stock go higher or will the 'naysayers' manage to kill the optimism like they managed to do with the stock of Palantir Technologies?
We shall find out before the end of this week. Whatever happens one things smart investors need to remember is that AI will shape the future of defense and technology and that NVIDIA and Palantir are the foundational pillars of that industry as one provides the hardware the other runs the software that delivers actual measurable and quantifiable results.