Source :-Telegraph India

On Wednesday, Nvidia CEO Jensen Huang pushed back against rumors that the artificial intelligence sector was getting too hot. This came after the chipmaker reported better-than-expected results that made investors more hopeful. The company saw faster growth in the third quarter and gave a strong outlook for the next few months, which eased fears that the AI boom might be outpacing real demand.

During a call with analysts, Huang dismissed the idea of an AI bubble, saying that Nvidia is still seeing huge demand from cloud providers and businesses that depend on its advanced processors.

Huang said, "From where we stand, we see something very different." This confirmed that cloud companies are racing to get their hands on Nvidia's cutting-edge chips. "We're in every cloud." Developers choose us because we are literally everywhere, from data centers and on-premise systems to PCs, robotics, and edge devices. "Things just work" with one architecture.

The company said again that it has booked $500 billion worth of chips through 2026, which shows that there is still a long-term need for its AI hardware.

Nvidia's stock rose about 5% in after-hours trading, which means the company is on track to add about $220 billion to its market capitalization. The stock had been under a lot of pressure in November, falling almost 8% after a three-year rally of more than 1,200%. The better results also made people feel better about the market as a whole. For example, S&P 500 futures rose 1% after the news.

Nvidia thinks it will make $65 billion in the fourth quarter of the fiscal year, give or take 2%. This is more than Wall Street's average estimate of $61.66 billion. The company expects an adjusted gross margin of about 75%. Colette Kress, the company's finance chief, said that margins should stay in the mid-70% range until fiscal 2027.

Nvidia's revenue growth sped up for the first time in seven quarters in the third quarter, with total sales rising by 62%. The data center division, which is Nvidia's main AI Bubble business, brought in $51.2 billion, which was more than analysts had expected ($48.62 billion).

The results showed that Nvidia is still a key player in the global AI Bubble ecosystem and that investment in AI infrastructure is still strong, even though the economy is uncertain and other markets are not doing as well.

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