"Nvidia CEO Jensen Huang didn't need any prompting on Wednesday to address the elephant in the room. "There's been a lot of talk about an AI bubble," he said on an earnings call before quickly getting to his main point: "From our vantage point, we see something very different." Huang went on to spend about five minutes trying to explain how the chipmaker, which has soared to become the world's most valuable publicly traded company over the past three years, would be able to sustain unprecedented customer demand."
""All industries, across every phase of AI, across all of the diverse computing needs in a cloud, and also from cloud to enterprise to robots," will need Nvidia's products, Huang said. The CEO's pep talk ultimately drew mixed reactions from Wall Street. Nvidia shares have fallen about 10 percent in recent weeks after hitting an all-time high in late October. Shares budged up about 5 percent in after hours trading on Wednesday after Nvidia reported record quarterly sales and Huang made his anti-bubble comments. But the increase was not enough to fully make up for the recent selloff."
"Nvidia has enjoyed three years of booming success since OpenAI debuted ChatGPT and caused a massive surge in demand for the company's GPUs, which are used to train and operate generative AI systems. Nvidia dominates the global market for GPUs, and its latest releases have become highly sought after with demand far exceeding supply. On Wednesday, Nvidia executives reiterated that it has about $500 billion in unfilled orders. The company has used its newfound wealth to buy back its own shares and invest billions of dollars in AI companies, including top users and customers of its chips such as ChatGPT developer OpenAI, data center operator CoreWeave, and Elon Musk's xAI, which develops the chatbot Grok."
Nvidia framed recent AI market concerns as an insufficient characterization and indicated strong, sustained demand for its GPUs across cloud, enterprise, and robotics. The company reported record quarterly sales and noted approximately $500 billion in unfilled orders, reflecting demand far exceeding supply. Nvidia's stock fell about 10 percent after an October high, then rose roughly 5 percent after hours following the earnings report, though gains did not fully offset the recent selloff. The company has deployed capital for share buybacks and invested billions in AI firms, including OpenAI, CoreWeave, and xAI.
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