Nvidia Doesn’t See an AI Bubble as It Rakes In the Cash

Bubble? What bubble? Nvidia CEO Jensen Huang dismissed fretful talk about massive AI investment on Wednesday, extolling the benefits of AI for a wide variety of companies—from startups to big firms like Meta Platforms. Of course, the biggest beneficiary of the AI transformation is Nvidia itself, whose stranglehold on the AI chip market is turning it into a tech version of the U.S. Mint. On Wednesday, Nvidia reported 62% higher revenue of $57 billion for the October quarter, a few billion dollars higher than it had projected. What’s notable is that Nvidia produced that growth even as its business selling advanced AI chips to China evaporated thanks to U.S. export controls. 

In fact, if you leave China out of the equation, Nvidia’s revenues everywhere else in the world doubled in the quarter, which is extraordinary growth given how much Nvidia’s business had already mushroomed in the past couple of years. Revenue in the latest quarter, for instance, was nearly 10 times what Nvidia reported for the same quarter three years ago. And every signal suggests Nvidia’s growth will continue. Several big tech companies—such as Meta, Microsoft, Google and Amazon—have said they are continuing to increase their spending on AI-related capital expenditures, much of which goes to Nvidia’s chips. Nvidia Chief Financial Officer Colette Kress told analysts Wednesday that Nvidia may do more than the $500 billion in sales it recently projected for the two years ending in December 2026. That number compares with just $130 billion it reported in revenue in the year to January 2025.