Nvidia Reports Record Revenue, CEO Dismisses AI Bubble Fears

Investors can breathe easier after Nvidia reported a record revenue of $57.01 billion for its fiscal third quarter, surpassing market expectations of $54.92 billion. During the company’s investor call, CEO Jensen Huang addressed concerns regarding a potential “AI bubble,” stating, “From our vantage point, we see something very different.” This optimism is underscored by the company’s robust performance in its data center business, which generated $51.2 billion in revenue, reflecting a remarkable 66% increase compared to the same period last year.

Huang emphasized strong demand for Nvidia’s products, revealing that “Blackwell sales are off the charts, and cloud GPUs are sold out.” The company anticipates continued growth, projecting revenue of $65 billion for the next quarter, exceeding market predictions of $61.66 billion. Nvidia’s Chief Financial Officer, Colette Kress, noted, “We currently have visibility to a half a trillion dollars in Blackwell and Rubin chips revenue from the start of this year through the end of calendar year 2026.”

Despite these positive indicators, apprehensions about an AI stock overvaluation have persisted. Growing concerns have emerged from various sectors, including renowned investors, economists, and technology executives. Recent high-profile sell-offs by major investors like Japan’s SoftBank and Peter Thiel’s hedge fund, Thiel Macro, have further fueled speculation about the sustainability of Nvidia’s valuation.

Following the earnings report, Nvidia’s shares rose more than 5%, reflecting investor confidence in the company’s ability to maintain its growth trajectory. The quarter was marked by significant partnerships, including a collaboration with AI competitor Anthropic, which has been interpreted as part of an expanding network of multibillion-dollar investments among major tech players.

In a noteworthy detail from Nvidia’s SEC filings, its commitment to invest up to $10 billion in Anthropic is described as a formal agreement, while its $100 billion investment in OpenAI is characterized as merely a letter of intent. This distinction was highlighted by journalist Ed Zitron on social media platform X. Nvidia has not yet responded to a request for comment from Gizmodo regarding this matter.

The company also hosted its inaugural GPU Technology Conference in Washington, D.C., where Huang sought to strengthen ties with the current U.S. administration. Kress noted that “sizable purchase orders never materialized” during the quarter due to ongoing political uncertainties, specifically related to the U.S. sales ban on chips to China. She stated, “While we were disappointed in the current state that prevents us from shipping more competitive data center compute products to China, we are committed to continued engagement with the U.S. and China governments.”

Recent reports suggest that Huang’s lobbying efforts may be yielding results. Axios indicated that White House officials are urging lawmakers to reconsider the GAIN AI Act, which would impose strict limits on Nvidia’s ability to sell chips to China if enacted as part of the upcoming defense bill.

As Nvidia continues to navigate the complexities of the tech landscape, its ability to maintain momentum in the face of external pressures will be closely monitored by investors and industry observers alike.