Nvidia’s stock jumped on Wednesday after the company delivered another strong earnings report, driven by massive demand for its advanced AI chips.
These results come at a time when many analysts are wondering whether the AI boom is becoming a bubble. But Nvidia’s CEO, Jensen Huang, completely pushed back on that idea.
“There’s been a lot of talk about an AI bubble,” he said. “From where we stand, we see something very different.”
Jensen explained that companies everywhere are moving away from old-style computing based on CPUs and switching to AI-powered systems that rely on GPUs — Nvidia’s specialty. On top of that, software is evolving fast, and new AI “agents” are able to handle tasks on their own.
According to Jensen, Nvidia is in the perfect position because its architecture supports every stage of AI development. He also stressed that the demand isn’t slowing down anytime soon.
He pointed out that AI is already paying off for major internet companies by improving their recommendation systems.
“The internet has billions of pieces of content,” he said. “There’s no way to choose what to show you on your screen unless the system is incredibly smart. That’s where generative AI comes in.”
Even with concerns about costs, big tech companies continue spending billions on Nvidia’s GPUs to power their AI ambitions.
Wedbush analyst Dan Ives said Nvidia’s results were a “pop the champagne” moment — a sign that fears of an AI bubble might be exaggerated.
Nvidia’s Earnings Blow Past Expectations
Nvidia reported a profit of $31.9 billion with a record $57 billion in quarterly revenue — up more than 60% from the same time last year. The stock rose more than 5% after the announcement.
Sales of Nvidia’s newest Blackwell chips were so strong that cloud providers ran out of supply.
The company expects next quarter’s revenue to hit $65 billion, which is nearly $3 billion more than analysts were expecting.
Most of Nvidia’s money still comes from its data center business.
The company is now valued at more than $4.5 trillion.
Nvidia also announced major partnerships:
- OpenAI will use at least 10 gigawatts of Nvidia systems
- Anthropic will use 1 gigawatt of Nvidia-powered infrastructure
Trouble in China
One weak spot in Nvidia’s report was China. The company is caught in the middle of President Trump’s trade war, which limits the export of powerful AI chips to China.
To comply with U.S. restrictions, Nvidia designed the H-20 chip specifically for the Chinese market. But sales were low — only about $50 million this quarter.
According to Nvidia’s CFO, Colette Kress, large orders from China never came through because of geopolitical tensions and rising competition from local Chinese chipmakers.
Kress added that the U.S. needs to maintain strong leadership in AI — and that includes being a trusted platform for developers and businesses around the world, including in China.
