After Nvidia smashed analyst estimates in its third-quarter earnings report, Huang told investors that there was still a long runway of growth for the company.<\/p>\n
Once again, he reminded listeners that a transition from CPU general-purpose computing to GPU<\/a> accelerated computing is underway, which greatly favors Nvidia, as it invented the GPU and still dominates the market for them today. Huang envisions the massive investment in non-AI software rapidly shifting to GPU-based AI software, which explains why companies are spending tens of billions of dollars on building out AI capacity.<\/p>\n Finally, Huang also predicted that the transition to agentic and physical AI will be “revolutionary, giving rise to new applications, companies, products, services.” <\/p>\n Paired with the strong quarterly results, Huang appeared to make a convincing case for Nvidia, and the stock jumped after hours and in Thursday morning trading, up as much as 5% before sliding to finish the session 3%.<\/p>\n The Nasdaq Composite (^IXIC<\/a> 0.09%) went from a gain of more than 2% in the morning to losing more than 2%, showing that Nvidia’s report failed to assuage fears of an AI bubble.<\/p>\n Image source: Nvidia.<\/p>\n Where the weakness is in the stock market<\/p>\n A bubble<\/a> refers to overly inflated asset prices, implying those prices will come crashing down. It’s always fair to debate valuations in the stock market, but based on Nvidia’s latest earnings report, as well as those of its big tech peers, it’s hard to see any weakness in the performance of the companies leading the AI charge.<\/p>\n For the first time in several quarters, Nvidia’s revenue growth rate accelerated, surprising analysts. The AI chip titan reported 62% revenue growth to $57 billion in the third quarter and sees top-line growth. <\/p>\n Palantir, another AI flag bearer, has reported accelerating revenue growth, reaching 63% in the third quarter, which included 77% revenue growth in the U.S. <\/p>\n Privately held start-ups<\/a> like OpenAI and Anthropic that have seen their valuations<\/a> soar are also seeing revenue soar, with revenue expected to reach a run rate of $20 billion by the end of the year. <\/p>\n<\/p>\n