Despite record sales and a strong financial forecast, Nvidia CEO Jensen Huang’s passionate arguments on the company’s earnings call failed to fully alleviate investor concerns about a potential AI bubble.
CNBC reports that Nvidia, the world’s most valuable publicly traded company, reported impressive fiscal third-quarter results on Wednesday, with earnings and revenue exceeding analysts’ expectations. The AI chipmaker’s shares rose more than four percent in morning trading on Thursday.
For the quarter, Nvidia reported adjusted earnings per share of $1.30, surpassing the estimated $1.25. Revenue came in at $57.01 billion, beating the $54.92 billion consensus estimate. The company also provided a robust sales guidance for the current quarter, projecting about $65 billion in sales, compared to the $61.66 billion expected by analysts.
Nvidia’s success is largely attributed to the insatiable demand for its AI chips, known as GPUs, which are used by leading tech companies such as Microsoft, Amazon, Google, Oracle, and Meta to develop new AI models. The company’s sales and outlook serve as a crucial indicator of the health of the AI boom in the technology industry.
Nvidia CEO Jensen Huang addressed concerns about an AI bubble, stating, “From our vantage point, we see something very different.” The company’s most important business segment, data center sales, reported $51.2 billion in revenue, easily surpassing analyst expectations of $49.09 billion and representing a 66 percent year-over-year increase. Within data center sales, $43 billion was attributed to the company’s GPUs, with much of the growth driven by initial sales of the GB300 chips. Networking, which allows multiple GPUs to work as a single computer, accounted for $8.2 billion in data center sales.
Huang’s comments were in part motivated by comments from Big Short investor Michael Burry on a potential AI bubble:
In a series of 13F regulatory filings released on Monday, Michael Burry’s Scion Asset Management revealed that it had bought put options on Nvidia and Palantir, indicating a bearish stance on the two companies. The disclosures came just days after Burry posted a cryptic warning to retail investors about market exuberance on social media, including an image of his character from The Big Short movie and a warning that “sometimes, we see bubbles.”
Finance chief Colette Kress revealed that the company’s best-selling chip family is now Blackwell Ultra, the second-generation version of the Blackwell chips. Huang emphasized that “cloud GPUs are sold out,” addressing investor concerns over the company’s rapidly growing sales to a handful of cloud providers called hyperscalers.
In October, Huang stated that Nvidia has $500 billion in orders for its AI chips for 2025 and 2026 combined, with Kress indicating that this number will continue to grow.
Nvidia’s legacy businesses also showed strong performance, with gaming revenue reaching $4.3 billion, up 30 percent from the previous year, and professional visualization sales hitting $760 million, a 56 percent year-over-year increase. The company’s automotive and robotics segment, highlighted as a key growth area, reported sales of $592 million, up 32 percent on an annual basis.
However, Nvidia expressed disappointment in its inability to ship current-generation Blackwell chips to China due to geopolitical issues and an increasingly competitive market. Despite obtaining export licenses for the H20 chip, the company only recorded $50 million in sales during the quarter.
Breitbart News recently reported that Jensen Huang made waves by claiming China is going to win the AI race:
In a stark warning from the head of the world’s most valuable company, Nvidia CEO Jensen Huang has asserted that China is set to emerge victorious in the global competition for AI dominance. Speaking at the Financial Times’ Future of AI Summit, Huang highlighted the contrasting approaches taken by the two superpowers, with China benefiting from lower energy costs and a more flexible regulatory environment. Huang’s comments were unambiguous — the Times quotes him as saying, “China is going to win the AI race.”
Huang’s comments come amidst ongoing tensions between the US and China over advanced technology, particularly in the semiconductor industry. The Trump administration recently maintained a ban on Nvidia selling its most advanced chips to Beijing, despite a meeting between U.S. President Donald Trump and Chinese leader Xi Jinping.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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