NVIDIA CEO dismisses AI bubble, predicts continued demand for GPUs
What's the story
NVIDIA CEO Jensen Huang has dismissed concerns of an impending AI bubble. He believes that the demand for graphics processing units (GPUs) is only going to grow as industries shift from CPU-based systems. The comments were made during NVIDIA's third-quarter earnings report, which showed a significant increase in revenue and profit per share.
Market analysis
Huang's argument against AI bubble
Huang dismissed the idea of an AI bubble by presenting a three-part argument. He said that a lot of existing computing tasks are moving to GPUs because traditional CPU-based systems can't handle modern AI workloads. This transition alone marks a major long-term upgrade cycle. Second, he argued that AI will not just optimize existing applications but also create entirely new categories of software built around intelligence.
AI evolution
The rise of agentic AI
Huang's third point was about "agentic AI," which can perform end-to-end tasks with minimal user input. He said this type of software will be even more compute-intensive, requiring a lot of GPU-led infrastructure. Huang stressed that NVIDIA is the only company capable of tackling all three fronts, urging investors to focus on long-term fundamentals rather than bubble rhetoric.
Financial outlook
NVIDIA's strong revenue forecast and market response
NVIDIA has given a strong revenue forecast of $65 billion for the January quarter, beating analysts' expectations by about $3 billion. The company also hinted that a future revenue bonanza could be even bigger than expected. Huang's comments on the AI bubble have eased fears across the tech sector, with shares rising by about 5% in late trading.
Market impact
NVIDIA's results boost AI stocks and market confidence
NVIDIA's results have become a barometer for the health of the AI industry, lifting several related stocks. CoreWeave Inc., an AI computing provider, gained over 9% in extended trading while its peer Nebius Group NV climbed more than 8%. Brian Mulberry, senior portfolio manager at Zacks Investment Management, noted that "markets are reacting very positively to the news that there is no slack in AI momentum."
Performance review
NVIDIA's quarterly results exceed analysts' estimates
NVIDIA's third-quarter results also beat analysts' estimates, with revenue reaching $57 billion. The company's main data center unit had a revenue of $51.2 billion in the quarter, beating an average estimate of $49.3 billion. Huang said the growing role of AI will keep demand for NVIDIA's products strong as it helps speed up existing computing work and is about to come into the physical world in robots and other devices.