Nvidia president and CEO Jensen Huang pushed back against fears of an AI bubble on the company’s blowout earnings call on Wednesday.
“There’s been a lot of talk about an AI bubble,” Huang said. “From our vantage point, we see something very different.”
Coming from the world’s most valuable company that powers nearly every major AI data center, that vantage point matters.
Huang said that AI is fueling three transformative shifts that Nvidia is uniquely poised to capitalize on.
The first stems from the slowdown of Moore’s Law — a trend that’s seen computer chips double in power roughly every two years. As that progress stalls, companies are shifting from traditional chips to GPUs, which Nvidia specializes in building to power AI systems.
Huang also cited the rise of generative AI, which is transforming search and recommendations at companies like Meta. Finally, he cited the shift to agentic AI and physical AI—which power coding assistants and robotics—as other game-changing opportunities.
“Nvidia is chosen because our singular architecture enables all three transitions and does so for any form and modality of AI across all industries,” Huang said.
Before Nvidia’s earnings report, concerns about a potential AI bubble were swirling. Dan Morgan, a senior portfolio manager at Synovus, wrote that a key concern was that spending by major cloud companies may be “moving into bubble territory” and could prove difficult to sustain.
On the earnings call, Nvidia CFO Colette Kress said that the company’s chips are being used at full capacity.
“The clouds are sold out,” she said, and the company’s GPU installed base is “fully utilized.”
Beyond Huang’s remarks, the company’s earnings spoke volumes. Nvidia reported record quarterly revenue of $57 billion, up 62% year-over-year. And it’s forecasting more growth ahead — to the tune of $65 billion in the fourth quarter. Shares were up about 5% in after-hours trading.
The strong results rippled across the chip sector. Broadcom and Taiwan Semiconductor each rose more than 7% in after-hours trading, while AMD climbed over 6% and Oracle gained more than 5%.
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