Debunking the AI Bubble Myth: NVIDIA’s Blowout Earnings Shatter Bearish Narratives

Background

NVIDIA’s third-quarter earnings, released yesterday, once again crushed market fears of an “AI bubble.” CEO Jensen Huang demonstrated with undeniable results that the AI boom is far from cooling—in fact, it has entered an even stronger phase of acceleration.

NVIDIA reported Q3 revenue of USD 57.01 billion, up 62% YoY, surpassing the high end of its guidance (60% YoY). EPS came in at USD 1.30, beating the market’s upper estimate of USD 1.25. The data center segment remained the company’s primary growth engine, delivering USD 51.2 billion, a 66% YoY increase. With Blackwell chips still in an extreme supply shortage and exhibiting exponential growth, Huang noted that the intensity of demand is “unbelievable.” He further highlighted that combined orders for Blackwell and the next-generation Rubin platform are expected to reach USD 500 billion from now through the end of next year. NVIDIA’s results and Huang’s commentary once again dispelled the notion of an AI bubble.

Commentary

NVIDIA’s earnings reaffirm that AI hardware demand remains exceptionally strong, with the market still in a supply-constrained environment. The primary bottleneck for AI today lies in power and infrastructure, not demand. NVIDIA is aggressively investing in AI infrastructure, pursuing partnerships not only in hardware, but also in upstream infrastructure and downstream software applications—evolving far beyond a chip manufacturer to become a driving force in building a sustainable AI ecosystem.

We believe that bearish calls on AI remain premature. While AI applications are not yet fully deployed across all sectors, they are increasingly integrated into both enterprise operations and daily life, indicating significant long-term growth potential.

As with any emerging technology cycle, periods of overestimation or temporary setbacks are inevitable. However, the overall direction of AI development remains firmly on track. Investors may consider taking advantage of market pullbacks as opportunities to participate in the next uptrend of the AI cycle.