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"We see something very different" - Nvidia CEO Jensen Huang dismisses AI
bubble talk, and I guess he should know

Date:
Sun, 23 Nov 2025 21:03:00 +0000

Description:
Huang dismisses AI bubble fears, underlines infrastructure demand, Nvidia
revenue growth, and a three-pronged strategy for data, applications, and
autonomous AI

FULL STORY

Nvidia CEO Jensen Huang has dismissed suggestions the global AI market is
currently in an economic bubble, arguing instead that current trends point to
fundamental changes in computing infrastructure. 

On the company's recent earnings call, Huang outlined a three-pronged
rationale explaining why AI is driving long-term investment in new systems
rather than speculative hype. 

He noted that industries handling data processing, ad recommendations, search
systems, and engineering are increasingly turning to GPUs because traditional
CPU -based infrastructure cannot meet the demands of AI workloads.

New applications and agentic AI

Huangs assertions are in stark contrast to those of Pat Gelsinger, former CEO
of Intel, who believes the AI sector is in bubble territory, though this 
could happen gradually rather than suddenly. 

Huang emphasized AI is not only being integrated into existing applications
but will also enable entirely new software capabilities. 

He said the emergence of agentic AI, which can operate with minimal user
input, reason autonomously, and plan complex tasks. 

Such developments will require substantially greater computing resources,
reinforcing the need for high-performance GPUs. 

Huang stated that Nvidia is uniquely positioned to address all three
categories of AI adoption, encompassing data-intensive workloads, new
applications, and autonomous AI operations. 

Theres been a lot of talk about an AI bubble, Huang said. From our vantage
point we see something very different. 

As you consider infrastructure investments, consider these three fundamental
dynamics, Huang said. Each will contribute to infrastructure growth in the
coming years. 

Nvidia reported revenue and profits exceeding analysts expectations, with
guidance also surpassing forecasts. 

Huang recently projected that AI chip sales could reach $500 billion by 2025
and 2026. 

The company noted its order backlog does not yet include deals with
organizations such as Anthropic or the expanded agreement with Saudi Arabia. 

CFO Colette Kress confirmed Nvidia remains on track to meet revenue targets,
highlighting robust demand for AI-driven systems. 

Investors have raised concerns about reliance on a small number of
hyperscalers, but Huang stressed that Nvidia chips continue to boost cloud
provider revenue through AI-enhanced recommendation engines. 

Huang believes the AI boom will increase traffic across enterprise systems,
requiring greater inspection and monitoring capabilities. 

 AI tools and expanding datasets are driving this trend, and Nvidia expects
infrastructure growth to continue as AI applications scale. 

The CEO stressed that what appears as high capital expenditure today reflects
foundational shifts rather than speculative investment. 

Huang concluded by asserting that investors and operators must consider these
dynamics when evaluating the AI sector. 

Nvidia views AI-driven GPU adoption as a structural transformation in
computing, signaling long-term growth potential beyond short-term market
fluctuations. 

Via CNBC 

======================================================================
Link to news story:
https://www.techradar.com/pro/we-see-something-very-different-nvidia-ceo-jense
n-huang-dismisses-ai-bubble-talk-and-i-guess-he-should-know

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