Nvidia CEO Jensen Huang brushes off AI bubble concerns.
On Thursday, Yahoo Finance reported that during the previous day’s Q3 earnings call, Huang emphasized Nvidia’s continued leadership in the AI market, stating he has a different perspective on bubble worries.
Huang underscored Nvidia’s dominance across all AI development stages.
Nvidia announced earnings per share (EPS) of 1.30 USD, surpassing analysts’ expectations of 1.26 USD, with revenue hitting 57.01 billion USD, exceeding the projected 55.2 billion USD.
For the year’s final quarter, Nvidia forecasts revenue of 64 billion USD, outpacing Wall Street’s 62 billion USD prediction.
Huang dismissed concerns about widespread cyclical investments in the AI sector.
Nvidia and Microsoft have faced criticism that agreements with AI companies like OpenAI – such as their investments of 10 billion USD and 5 billion USD, respectively, in Claude developer Anthropic – could artificially inflate GPU demand and potentially fuel an AI bubble.
Nvidia CFO Colette Kress directly challenged claims by investor Michael Burry, the real-life protagonist of the movieThe Big Short, who suggested companies like Meta and Oracle Corporation are inflating revenues and creating an AI bubble.
Kress refuted Burry’s speculation about outdated AI company data center equipment, asserting that Nvidia’s CUDA software development system extends the lifespan of their chips.
