Nvidia CEO hits back at AI bubble, circular investing fears: 'We see something very different'

Nvidia (NVDA) took its detractors to task during the company's Q3 net telephone connected Wednesday, with some CEO Jensen Huang and CFO Colette Kress launching broadsides against capitalist concerns related to an AI bubble.

Huang didn't creation astir the topic, instantly addressing it successful his prepared connection and laying retired wherefore helium believes Nvidia is uniquely positioned to proceed starring the AI market.

"There's been a batch of speech astir an AI bubble," Huang began his remarks. "From our vantage point, we spot thing precise different. As a reminder, Nvidia is dissimilar immoderate different accelerator. We excel astatine each signifier of AI."

It didn’t wounded the CEO's statement that Nvidia bushed Wall Street's expectations connected some the apical and bottommost lines for the anterior 4th and issued better-than-anticipated guidance for the existent 4th quarter.

In Q3, the institution saw net per stock (EPS) of $1.30 connected gross of $57.01 billion. Analysts were estimating EPS of $1.26 connected gross of $55.2 billion, according to Bloomberg statement data.

For the 4th quarter, the institution said it volition bring successful gross of $64 billion-plus oregon minus 2%, amended than Wall Street's projected $62 billion.

What's more, during Nvidia's net call, CFO Colette Kress told investors and analysts the institution has visibility toward $500 cardinal successful Blackwell and Rubin AI spot gross done calendar 2026. The institution is presently successful fiscal 2026.

Nvidia banal roseate much than 4% successful aboriginal trading Thursday, earlier turning antagonistic on with the broader market.

Huang besides pushed backmost against questions regarding Nvidia and the broader AI industry's circular investments. Those see deals similar Nvidia and Microsoft's (MSFT) statement with Anthropic (ANTH.PVT), which volition spot the Claude developer acquisition $30 cardinal worthy of Microsoft's Azure unreality usage. In turn, Nvidia and Microsoft agreed to put $10 cardinal and $5 billion, respectively, into Anthropic.

Nvidia has been cardinal to respective of these types of deals, which see akin arrangements with OpenAI (OPAI.PVT), CoreWeave (CRWV), and galore different companies.

That has led investors to dependable alarm bells astir the imaginable for specified agreements to make artificial request for GPUs, further inflaming fears of an AI bubble.

Huang, however, said Nvidia's pacts to supply backing to companies that past acquisition Nvidia chips are portion of the spot giant's effort to grow the scope of its CUDA ecosystem.

CUDA is the bundle that allows Nvidia GPUs to powerfulness AI apps and beryllium utilized for general-purpose computing. This includes a scope of add-on capabilities for assorted usage cases, from robotics to 3D simulation.