Nvidia blew past Wall Street financial targets in its third quarter, posting a 62% surge in revenue and better-than-expected growth for the current quarter, as executives shrugged off concerns of a potential AI bubble and added fuel to the fire, forecasting trillions of dollars in industry-wide spending on AI infrastructure by the end of the decade.
“There’s been a lot of talk about an AI bubble,” Nvidia CEO Jensen Huang said during a conference call on Wednesday. “From our vantage point, we see something very different.”
Nvidia’s stock rose as much as 5.7% in after hours trading, after finishing the regular session up 3%.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” Huang said in a prepared statement, referring the most advanced version of the company’s chip used by AI providers like Meta, OpenAI, Microsoft and Google. The strong demand led Nvidia to project fourth-quarter revenue between $63.7 billion and $66.3 billion, well above the $62.4 billion that analysts were expecting.
Nvidia’s better-than-expected results come as investors and industry observers worry about whether the red hot AI market is a bubble that on it’s way to a devastating burst, with questions swirling about whether AI services will generate sufficient revenue to keep pace with the staggering capital expenditures and energy required to build and run next-generation models.
