"It was by any measure a blowout for the world's largest company: the company made 65 percent more profits than in the same quarter last year, sales were even higher than analysts expected, and leadership is forecasting at least $500 billion in AI chip sales by the end of 2026. Permanently pumped CEO Jensen Huang bragged that the company was "sold out" before going oracular: "We've entered the virtuous cycle of AI.""
"Things couldn't be going much better for Nvidia, which is one of the few large companies making serious profits that are primarily and unambiguously attributable to AI. The response from investors, though, was strange. The next morning, the stock popped a few percent but remained below recent highs, and ended the day slightly down. For many analysts and industry watchers, this wasn't a story about the greatest quarter for the greatest company of all time. It was merely a relief."
Nvidia delivered a blowout quarter with 65 percent higher profits year-over-year, sales above analyst expectations, and a forecast of at least $500 billion in AI chip sales by 2026. CEO Jensen Huang said the company was "sold out" and described a rapidly scaling AI ecosystem with more foundation model makers, startups, industries, and countries adopting AI. Investors reacted with a muted stock move, viewing results as reassurance that the AI trade remains alive rather than a superlative triumph. Discussions of an AI bubble have become common, with industry leaders acknowledging how excitement can inflate a kernel of truth.
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