Investors who have been losing sleep over Nvidia’s earnings can start breathing normally. All of the news from CEO Jensen Huang was reassuring for stakeholders of the world’s largest publicly traded company.
“There has been a lot of discussion about an AI bubble. From our vantage point, we see something very different,” Huang said on the company’s investor call.
Looks like there’s a lot of money going into “something very different.” The company generated record revenue of $57.01 billion during its fiscal third quarter. That was well above market expectations of $54.92 billion, CNBC reported. Earnings per share also beat expectations at $1.30 versus $1.25.
Nvidia’s bread and butter, the data center business, also posted record revenue of $51.2 billion, up 66% from the previous year.
The tech giant is expecting record demand to continue, as Huang said in the earnings press release that “Blackwell sales are off the charts, and cloud GPUs are sold out.” Revenue expectations for the upcoming quarter were $65 billion, beating market expectations of $61.66 billion.
“We currently have visibility into half a trillion dollars at Blackwell & Rubin [chips] Revenue from the beginning of this year to the end of calendar year 2026,” Nvidia CFO Colette Cress said in the company’s investor call on Wednesday.
The AI industry has been biting its nails in anticipation of this specific report for some time now.
As Nvidia was busy setting records during the quarter as the first company to reach a $5 trillion market cap, concerns over an AI bubble continued to grow. At the center of every concern was Nvidia, which as the largest global supplier of chips is considered the center of the AI business.
A growing multitude of experts, from famous investors to economists, central banks and even top tech CEOs themselves, have raised concerns about the overvaluation of AI stocks in recent months.
Then, on top of all this, two major investors, Japan’s SoftBank and Peter Thiel’s hedge fund Thiel Macro, sold their entire stake in the company one after the other in the last two weeks.
Investors were keeping an eye on Wednesday’s report to see if Nvidia could support its meteoric valuation and ease concerns of an impending bubble burst. Shares rose more than 5% in response to the report, so it seems they may be satisfied with what they’ve seen so far.
Nvidia has had a stormy quarter. The tech giant announced several high-profile partnerships, including its first partnership with OpenAI competitor Anthropic.
The partnerships added fuel to the fire of the AI bubble, as experts opined that this infinitely expanding and tangled web of billion-dollar investments made between a handful of giant tech companies with overlapping interests was “circular dealmaking.”
The SEC filing had potentially interesting revelations about one of these partnerships. Although the company characterizes its commitment to invest up to $10 billion in Anthropic as an apparent “agreement,” the tech giant’s massive $100 billion investment in OpenAI has been described as “a letter of intent with an investment opportunity.” This was first reported by journalist Ed Zitron on X. Nvidia has not yet responded to Gizmodo’s request for comment.
Also last quarter, the company held its first GPU technology conference in Washington DC, where CEO Jensen Huang repeatedly reiterated his continued collaboration with the Trump administration in hopes of finding a desirable resolution to the saga of the ban on sales of China chips.
“Large purchase orders were never fulfilled” last quarter due to political uncertainty, Kress said.
He said, “While we were disappointed by the current situation that prevents us from shipping more competitive data center compute products to China, we are committed to continued engagement with the U.S. and China governments.”
But Huang’s efforts may be yielding some results. Axios reported earlier on Wednesday that White House officials were asking lawmakers to kill the GAIN AI Act, which would heavily restrict Nvidia’s ability to sell chips to China if passed as part of the upcoming annual defense bill.