Nvidia CEO Jensen Huang Rejects ‘AI Bubble' After Record Q3 Results

Core Insights - Nvidia's CEO Jensen Huang dismissed concerns about an AI spending bubble, stating that the company is witnessing significant shifts in computing paradigms [2][3] - Nvidia reported record revenue of $57 billion for the third quarter, a 62% increase year-over-year, driven by demand for AI infrastructure [3][10] - The company anticipates $65 billion in revenue for the current quarter, reflecting strong growth across various sectors [10] Financial Performance - Revenue reached $57 billion, up 62% from the previous year, with data center revenue rising 66% to $51 billion and gaming revenue at $4.3 billion [10] - Nvidia expects to maintain gross margins in the mid-70% range despite rising input costs, with operating expenses increasing to support new architectures [8] Market Trends - Companies are transitioning AI systems from pilot phases to everyday applications, with examples including RBC, Lowe's, Unilever, and Salesforce [5] - Large software platforms like ServiceNow, SAP, and CrowdStrike have integrated Nvidia's AI stack, leading to steadier consumption patterns [6] Strategic Initiatives - Nvidia is coordinating with supply chain partners to secure components, which supports growth and helps customers scale deployments without delays [7] - The company has visibility into $500 billion in revenue from future projects through 2026, indicating strong long-term demand [4] Project Developments - Nvidia's projects now encompass around 5 million GPUs, including significant agreements with Saudi Arabia and various partnerships in drug discovery and manufacturing [11] - Robotics firms and model builders are expanding their use of Nvidia's tools, indicating a broadening application of AI technologies across industries [11]