Nvidia CEO Jensen Huang isn't worried about a bubble. He says the AI boom is just getting started.

During a recent earnings call, Jensen Huang, the President and CEO of Nvidia, expressed confidence in the ongoing AI revolution, countering speculation about a potential bubble in the sector. "There's been a lot of talk about an AI bubble," Huang stated. "From our perspective, we perceive the situation quite differently." Nvidia, recognized as a leading force in the AI industry, is at the forefront of three significant transitions that Huang believes will shape the future. The first is the slowdown of Moore's Law, which traditionally described the doubling of chip power every two years. As this trend falters, companies are increasingly relying on GPUs—Nvidia's specialty—to power their AI systems. Huang also highlighted the explosive growth of generative AI, which is revolutionizing search functionalities and recommendation systems at major firms like Meta. Additionally, he pointed to the emergence of agentic AI and physical AI, which are crucial for advancements in coding assistance and robotics, presenting further opportunities for innovation. "Nvidia is chosen because our singular architecture supports all three transitions across various industries and AI modalities," Huang emphasized. Just prior to the earnings report, concerns regarding a potential AI bubble had circulated, with Dan Morgan, a senior portfolio manager at Synovus, warning that spending by major cloud companies might be reaching unsustainable levels. Nvidia's CFO, Colette Kress, reassured investors by stating that the company’s chips are operating at full capacity, affirming, "The clouds are sold out," and noting that their GPU installed base is fully utilized. The company's financial results further underscored its strong position, reporting a record quarterly revenue of $57 billion, reflecting a remarkable 62% increase compared to the previous year. Looking ahead, Nvidia projects even more growth, estimating revenues of $65 billion for the upcoming fourth quarter. Following these announcements, Nvidia’s shares rose approximately 5% in after-hours trading, boosting the entire chip sector, with Broadcom, Taiwan Semiconductor, AMD, and Oracle also seeing significant gains.