Revenue and profit on the rise, the quarterly report of the most important company in the world has a beneficial effect on the European and American stock markets. CEO Jensen Huang declares: “I don’t see the risk of an AI bubble”, but not everyone agrees
Not long ago Nvidiathe American semiconductor giant, became the first company in the world to exceed 5 trillion market capitalization. On Wednesday evening the presentation of the third quarter results took on a particular significance, because for a few weeks now rumors and fears have been circulating regarding the “AI bubble”.
Jensen Huang against the AI bubble
Speaking last night, Jensen Huangfounder and CEO of Nvidia, surprised Wall Street with accelerated growth in company resultsafter several quarters of slowing sales which had given rise to rumors of an “AI bubble”.
«There has been a lot of talk about an artificial intelligence bubble. From our perspective, we see something very different», Huang said during the night, asserting that «The move to accelerated computing is critical; just as the transition to generative AI is transformational and necessary”, while the transition “to agential and physical AI will be revolutionary”.
Nvidia’s quarterly results
“It gives grist to his mill”, one could assert, but Huang’s claims are supported by the company’s results. This is evident in the quarterly report just published a total turnover of 57 billion dollarsup 22% compared to the previous quarter and by 62% compared to the same quarter a year ago.
GAAP net income was approximately $19.3 billion, more than doubled (+108%) compared to a year agowhile GAAP earnings per share reached $0.78, an increase of 111% year over year.
Then there are the sales of new chips Blackwellin addition to cloud GPUs, practically all sold. Also confirmed is visibility of half a trillion dollars ($500 billion) in revenues from Blackwell + Rubin for 2025-2026 alone. In short, Nvidia appears more than solid.
Because we fear the bubble
Nvidia’s strong third-quarter results have undoubtedly calmed, at least temporarily, the nerves of investors worried that the AI boom has outpaced fundamentals.
However, it was among others who raised the alarm Sundar PichaiCEO of Alphabet, the holding company that controls Google. In an exclusive interview with the BBC he drew a direct picture of the consequences of a possible bursting of the bubble: “I think that no company would be immune, including us.”
But the crucial fact is another: Pichai openly acknowledges that the moment of euphoria around AI contains elements of “irrationality.” Also Michael Burrythe investor famous for predicting the 2008 subprime mortgage crisis, announced that he had purchased put options (bearish bets) with a total value of more than $1.1 billion, mainly against Nvidia and Palantir Technologiesthe two symbols of the AI revolution.
McKinsey confirms: few concrete gains for companies
To refresh the picture there is a report by McKinsey of November, one of the most important consultancy firms in the world, which reveals a yawning gap between AI media hype and real operational results for businesses.
According to the study, conducted on 1,993 professionals in 105 countries, the picture is not very encouraging. Out of 876 respondents who declared they had adopted generative AI in the company, only 39% of respondents report a measurable impact across the organization.
This means that more than 61% of companies that have invested in generative AI have not yet achieved significant gains proportional to the money spent.
