Record numbers, fluctuating shares – and Jensen Huang blames managers for their “anti-AI” stance. The NVIDIA boss doesn’t see hype, but rather the start of a new AI era.
• Record numbers, but weak share price
• Huang criticizes internal AI skepticism
• Demand overshadows geopolitical risks
Record numbers – but the market reacts coolly
NVIDIA delivered another exceptional quarter and yet the reaction on the stock market remained significantly more muted than expected. As Business Insider reports in its earnings recap, the company achieved sales of $57 billion (forecast: $55 billion); the data center segment contributed an impressive $51 billion (expected: $49.3 billion). The outlook was also clearly above analyst estimates: NVIDIA expects sales of $65 billion for the fourth quarter.
Despite these records, the shares slipped into the red the following day. In an internal meeting, Jensen Huang explained that the market had not sufficiently appreciated the strong results, according to a Business Insider All Hands leak. He also described that NVIDIA was in a kind of “lose-lose situation”: Bad numbers would be seen as an indication of an AI bubble, while good numbers would be seen as supposed confirmation that NVIDIA was further fueling this bubble.
Huang criticizes internal “anti-AI” attitudes and warns against excessive expectations
At the internal all-hands meeting, Jensen Huang spoke openly about growing skepticism within the company, according to Business Insider. He made it clear that some internal reactions and discussions about NVIDIA’s role in the AI boom irritate him – for example when employees joke that the company now “holds the whole planet together.”
Huang also criticized a certain reluctance of some managers towards the AI hype. According to the Business Insider All Hands Leak, he warned against being influenced by such debates: The expectations of NVIDIA are now so high that even the smallest deviations from the forecasts are seen as a serious sign.
The resulting pressure is enormous; at times the company lost around $500 billion in market value. Huang pointed out that such a loss in value was only possible because NVIDIA had previously risen to extreme heights. The CEO’s subtextual appeal: Instead of being unsettled by “anti-AI” narratives, managers should consistently work on the results that will support the ongoing AI boom.
No AI bubble – Huang sees only the beginning of the boom
In the public debate, there are repeated warnings about a possible AI bubble, but Jensen Huang clearly contradicted these assessments, according to Business Insider. On the earnings call, he emphasized that from his own perspective, NVIDIA is not at the peak of hype, but rather at the beginning of a long-term technological revolution.
As Business Insider further reports, Huang named three structural trends that are driving the AI boom: First, the expiration of Moore’s Law, which is forcing many companies to switch from classic processors to GPUs. Secondly, the rapid spread of generative AI, which is changing business models and applications in almost all industries. And third, the rise of agentic and physical AI – from coding assistants to robotics – which is opening up entirely new markets.
Financially, there is also a lot to be said for continued growth. CFO Colette Kress explained that the computing capacities of the major cloud providers are consistently utilized and that NVIDIA already has around $500 billion in AI chip orders in the pipeline for 2025 and 2026.
Geopolitics & Major Customers: Risks remain – but demand remains exceptionally high
Despite strong growth, NVIDIA continues to face geopolitical risks. CFO Colette Kress explained that a large portion of recent China orders could not be delivered due to political restrictions. In its outlook for the fourth quarter, NVIDIA does not expect any data center sales from China, but the sales forecast remains at a record level.
At the same time, it shows how strong demand is in the other markets. As Business Insider reports, the new Blackwell chips are in demand far beyond expectations, so NVIDIA wants to further expand its presence in the USA. In addition, large partnerships support growth: new and existing deals with Anthropic, xAI and OpenAI as well as close collaboration with the large hyperscalers – which, according to NVIDIA, are often underestimated – continue to form the core of customer demand and ensure stable, long-term offtake.
Editorial team finanzen.net
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