Jensen Huang: "AI Bubble? No Basis"... Nvidia Reports Record-High Earnings

Controversy Over Cyclical Investments: "A Once-in-a-Generation Company"
Q3 Revenue Reaches $57 Billion... Up 62% Year-on-Year

Recently, concerns over an artificial intelligence (AI) bubble have led to a downturn in the US stock market, but Nvidia has eased these anxieties by posting record-breaking results. Jensen Huang, CEO of Nvidia, also expressed strong confidence, offering a positive outlook on both the company's growth and the AI market.

On the 19th (local time), during a conference call following the earnings announcement, CEO Huang directly addressed market concerns about Nvidia, stating, "There has been much talk about an AI bubble recently, but from our perspective, we see a completely different situation."

Jensen Huang, CEO of Nvidia. Photo by Reuters Yonhap News

Directly Refuting the AI Bubble Concerns: "Investing in a Once-in-a-Generation Company"

Currently, the biggest issue in global stock markets is the AI bubble. Investments among AI companies are reminiscent of the dot-com bubble era, raising concerns that cyclical funding is inflating the bubble. There are also claims that Nvidia's investments may be artificially boosting demand. Recently, such anxieties have been fueled by SoftBank Group Chairman Masayoshi Son and billionaire investor Peter Thiel selling all their shares in Nvidia.

However, CEO Huang emphasized regarding the company's investments, "Everything OpenAI does is based on the Nvidia platform. The partnership between the two companies is about deeper technical collaboration to support rapid growth," adding, "Nvidia has invested in a very important, once-in-a-generation company, and I am confident that this investment will yield outstanding returns."

He went on to mention key AI examples running on the Nvidia platform, such as Anthropic, xAI, and Gemini. He also revealed plans to supply chips to Humane, an AI company backed by Saudi Arabia's Public Investment Fund (PIF). CEO Huang stated, "All major AI models are running on Nvidia technology," and "Nvidia is expanding its ecosystem and is securing stakes by investing in companies with significant growth potential."

Bloomberg News evaluated these comments as "remarks that dispel concerns amid questions about Nvidia's investments in AI startups."

Confidence in Revenue Growth: "TSMC, SK Hynix, and Samsung Are Providing Excellent Support"

He also expressed strong confidence in revenue growth. At the developer event (GTC) on October 28, CEO Huang had mentioned that Nvidia had received AI chip orders worth 500 billion dollars (approximately 734 trillion won) for 2025-2026. Referring to this, he said, "We are making steady progress toward our goal. In addition to the 500 billion dollars, there will be further opportunities," suggesting the possibility of exceeding market expectations.

In the earnings announcement preceding the conference call, CEO Huang stated, "Blackwell sales are rising sharply, and all cloud GPUs are sold out," adding, "Computing demand is growing exponentially in both training and inference. We have entered a virtuous cycle for AI."

There are also concerns that explosive AI infrastructure development is causing chip supply to lag behind demand. CEO Huang explained that partners such as TSMC, SK Hynix, and Samsung Electronics are providing excellent support, and that both supply and demand remain robust.

Additionally, CEO Huang said, "We plan to continue our share buybacks," though he did not specify the timing or scale.

On this day, Nvidia announced that it recorded 57.006 billion dollars in revenue for the third quarter of its fiscal year (August to October). This represents a 62% increase year-on-year, surpassing the market forecast of 54.92 billion dollars compiled by market research firm LSEG. Earnings per share (EPS) also reached 1.3 dollars, higher than the forecast of 1.25 dollars. Operating profit was 36.001 billion dollars, and net profit was 31.91 billion dollars, both up 65% from the same period last year.

The company projected that growth would continue in the fourth quarter, with revenue expected to reach 65 billion dollars (with a margin of error of ±2%), exceeding the analyst consensus of 62 billion dollars compiled by Bloomberg.

AI Stocks Rise Alongside Nvidia... Uncertainty in the Chinese Market Remains

As the leading AI stock, Nvidia is considered a barometer for the technology industry and the broader market. On this day, Nvidia's share price rose 5.08% in after-hours trading, driven by results and outlook that exceeded market expectations. Other AI-related stocks that had been declining due to the AI bubble controversy, such as Palantir (up 4.01%) and CoreWeave (up 10.12%), also rose in tandem.

Nvidia is also expanding domestic production in the United States in line with the Trump administration's policies. CFO Colette Kress announced last month that, in partnership with TSMC, Nvidia had unveiled its first Blackwell chip produced in the US and would continue to expand its US manufacturing base.

However, with the Trump administration's continued restrictions on overseas semiconductor exports, Nvidia is facing difficulties expanding sales in China, one of its key markets. CFO Kress stated, "Competition has intensified in China, and there have been no large-scale H20 orders," adding, "We are working to find ways to supply more competitive data center computing products to China."

In an interview with Bloomberg TV following the conference call, CEO Huang expressed hope to re-enter the Chinese market, but said, "For now, we must assume that the outlook for the Chinese market is zero." Nvidia also clarified in its fourth-quarter earnings guidance that no revenue from Chinese data centers was included. Additionally, CEO Huang addressed concerns about the potential smuggling of Nvidia chips, stating that the company has repeatedly tested data centers worldwide and will strictly manage chip distribution to prevent them from ending up in the wrong hands.