NVIDIA announced its earlierFiscal Year 2026 Third Quarter Financial ReportIn response to recent market concerns about an AI bubble, CEO Jensen Huang directly addressed the issue during the earnings call. He stated bluntly, "There's been a lot of discussion about an AI bubble, but from our vantage point, we see a completely different picture."
As the most valuable company driving the world's major AI data centers, Jensen Huang emphasized that the development of AI is not a bubble, but is just beginning, and pointed out three major transformation opportunities under NVIDIA's unique advantages.
Moore's Law slows down, generative AI and agentic AI are emerging as a three-pronged approach.
Jensen Huang pointed out that AI is driving three transformative shifts, and NVIDIA is poised to profit from them:
• Accelerated computing replaces traditional chips: As Moore's Law slows, the process of traditional chip performance doubling every two years has stalled, prompting companies to turn to NVIDIA's specialized GPU-accelerated computing systems.
• Generative AI: It is revolutionizing the search and recommendation systems of companies like Meta.
• Agentic AI and Physical AI: This is the latest game-changer that will drive the development of coding assistants and robotics.
Jensen Huang emphasized: "NVIDIA was chosen because our single architecture can achieve these three transformations and is applicable to any form and modality of AI across all industries."
Revenue increased by 62% year-on-year to 570 billion; CFO: Cloud computing power is sold out.
Financial data also corroborates the official optimism. NVIDIA's third-quarter revenue reached a record $570 billion, a significant increase of 62% compared to the same period last year. The company further predicts continued growth in the fourth quarter, with a revenue target of $650 billion.
In response to analysts' concerns that cloud computing giants' spending might be unsustainable, NVIDIA CFO Colette Kress stated at the conference that the company's chip production capacity is being fully utilized. She stated bluntly, "The clouds are sold out," and that the existing GPU installation base is also "fully utilized."
The stock price surged in after-hours trading, boosting the semiconductor sector.
Boosted by its earnings report, NVIDIA's stock price rose about 5% in after-hours trading. This strong earnings effect also spread to the entire chip sector, with Broadcom and TSMC both rising more than 7% in after-hours trading, AMD climbing more than 6%, and Oracle also seeing a gain of more than 5%.
