Hyperliquid News Today: "NVIDIA's $500B AI Order Backlog Fuels $5T Hype vs. Overbuilding Fears"

NVIDIA's upcoming third-quarter earnings report, set for November 19, has become a pivotal event in the global AI industry, with the company's $500 billion order backlog for AI chips through 2025 and 2026 capturing investor attention. This figure, disclosed by CEO Jensen Huang at the GTC conference in October, underscores explosive demand for NVIDIA's Blackwell and Rubin GPUs, positioning the chipmaker as the dominant force in AI infrastructure despite geopolitical headwinds. The order pipeline, spanning AI accelerators and networking equipment, reflects a market valuation surge to $5 trillion, a milestone achieved in October 2025.

Analysts expect NVIDIA to report Q3 revenue of $54.8 billion, a 56% year-over-year increase, with data center sales projected to exceed $48 billion. This growth is fueled by hyperscalers like Microsoft and Amazon, which continue to invest heavily in AI infrastructure. However, skepticism persists about the sustainability of this demand, with critics warning that a handful of large cloud providers are driving most of the spending. This concentration raises concerns about overbuilding and potential market corrections.

Geopolitical challenges further complicate NVIDIA's outlook. U.S. export restrictions have erased its market share in China's AI GPU sector, resulting in annual revenue losses estimated in the low tens of billions. While efforts to diversify into other markets are underway, the absence of China-related sales remains a drag on growth. Huang has signaled hope for renewed access to China but emphasized that such decisions rest with the U.S. government.

The broader AI industry is also grappling with valuation concerns. Some analysts compare the current AI-driven market euphoria to the dot-com bubble, with NVIDIA's stock price rising 13-fold since 2023. While proponents argue that AI's transformative potential justifies the optimism, detractors warn of a "Catch-22" scenario: Strong earnings could amplify fears of overinvestment, while modest guidance might signal premature normalization of growth.

NVIDIA's strategic moves, including a $10 billion investment in OpenAI and partnerships with Intel and Nokia, highlight its efforts to secure long-term dominance. However, competition is intensifying, with rivals like AMD and cloud providers developing custom AI chips. Despite these challenges, NVIDIA's leadership in AI hardware and its robust order book position it to capitalize on the sector's expansion, even as investors remain wary of potential volatility.