AI Bubble? Nvidia isn’t seeing it
Talk of an AI bubble keeps resurfacing, yet Jensen Huang sees it differently, and Nvidia’s results back him up. Positioned at the heart of the AI stack, the company has unmatched visibility into demand and has repeatedly overdelivered on every forecast. Huang revealed $500 billion in combined 2025–26 orders, covering current Blackwell GPUs, next-year Rubin chips, and networking components, underscoring that demand shows no signs of slowing. Furthermore, with each 1 GW data centre representing roughly a $50 billion revenue opportunity, Nvidia has clear sight of tens of these gigawatt-scale builds over the decade.
Nvidia delivered another exceptional quarter. Q3 revenue hit $57 billion, up 22% sequentially and 62% year-over-year, comfortably above guidance. The January-quarter outlook is $65 billion, beating the $62 billion consensus and pointing to 65%yoy growth. Demand continues to outpace supply.
Data centre revenue reached $51.2 billion, up 66%yoy and rising $10 billion sequentially, the largest quarterly increase in Nvidia’s history. Supply commitments are up 63%yoy as Blackwell Ultra ramps. Management reiterated its $500 billion Blackwell/Rubin revenue target by end-2026, implying $300 billion+ from data centres alone.
Gross margins came in at 73.4% GAAP, supported by Blackwell Ultra. Q4 guidance calls for mid-70s margins despite rising input costs, highlighting Nvidia’s pricing power.
Nvidia expects $3-4 trillion in annual AI infrastructure spending by 2030, and given Jensen Huang’s proven track record, this projection should be taken seriously. If he is correct, Nvidia’s current valuation is well below its true potential, leaving substantial upside.
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