Does Jensen Huang See a Bubble? No. He Sees ‘One thing Very Completely different’

Traders dropping sleep over Nvidia’s earnings can resume respiration usually. All of the information from CEO Jensen Huang was reassuring for stakeholders on the earth’s largest publicly traded firm.

“There’s been lots of speak about an AI bubble. From our vantage level, we see one thing very totally different,” Huang stated on the corporate’s investor name.

That “one thing very totally different” appears to be tons and tons of cash pouring in. The corporate posted a file $57.01 billion in income throughout its fiscal third quarter. That was properly above market expectations of $54.92 billion, as reported by CNBC. Earnings per share additionally beat expectations at $1.30 versus $1.25.

Nvidia’s bread and butter, the information middle enterprise, additionally introduced in file income at $51.2 billion, which was up 66% from this time final yr.

The tech large is anticipating that file demand to proceed, as Huang stated within the earnings press launch that “Blackwell gross sales are off the charts, and cloud GPUs are bought out.” Income expectations for the upcoming quarter have been $65 billion, above market expectations of $61.66 billion.

“We at present have visibility to a half a trillion {dollars} in Blackwell and Rubin [chips] income from the beginning of this yr by means of the top of calendar yr 2026,” Nvidia CFO Colette Kress stated within the firm’s investor name on Wednesday.

The AI trade had been biting its nails in anticipation of this particular report for a while now.

As Nvidia was busy hitting information over the quarter as the primary firm to ever hit $5 trillion market cap, worries over an AI bubble ballooned steadily. On the coronary heart of each concern was Nvidia, which is taken into account central to the AI commerce as the largest world provider of chips.

A rising refrain of specialists, from famous investors to economists, central banks and even top tech CEOs themselves, have raised issues about an overvaluation of AI shares in current months.

Then, on prime of all that, two main buyers, Japan’s SoftBank and Peter Thiel’s hedge fund Thiel Macro, offloaded their whole stake within the firm back-to-back over the previous two weeks.

Traders have been seeking to Wednesday’s report back to see if Nvidia may again up its meteoric valuations and quell these worries of an impending bubble burst. The shares rose greater than 5% in response to the report, so it appears they is perhaps happy to this point with what they’ve seen.

Nvidia has had a whirlwind quarter. The tech large introduced a flurry of high profile partnerships, together with its first ever with OpenAI competitor Anthropic.

The partnerships added gas to the AI bubble fireplace, as specialists opined that this infinitely increasing and tangled internet of multibillion greenback investments made amongst a handful of large tech corporations with overlapping pursuits was “circular dealmaking.”

The SEC submitting had doubtlessly fascinating revelations about one in all these partnerships. Although the corporate characterizes its dedication to speculate as much as $10 billion in Anthropic as a transparent “settlement,” the tech large’s whopping $100 billion funding into OpenAI is characterised as “a letter of intent with a possibility to speculate.” The primary to level that out was journalist Ed Zitron on X. Nvidia hasn’t but responded to a Gizmodo request for remark.

Additionally this previous quarter, the corporate hosted its first GPU Technology Conference in Washington D.C. as CEO Jensen Huang continued cozying as much as the Trump administration in hopes of a fascinating decision to the on-again-off-again China chips sales ban saga.

“Sizable buy orders by no means materialized” this previous quarter as a result of that political uncertainty, Kress stated.

“Whereas we have been disillusioned within the present state that stops us from delivery extra aggressive knowledge middle compute merchandise to China, we’re dedicated to continued engagement with the U.S. and China governments,” she added.

However Huang’s efforts could also be bearing some fruit. Axios reported earlier on Wednesday that White Home officers have been asking lawmakers to dump the GAIN AI Act that may closely limit Nvidia’s capability to promote chips to China if it passes as a part of the upcoming annual protection invoice.