Nvidia's latest revenue forecast has reassured investors, easing concerns about an AI bubble. The chipmaker's projection of $65 billion for the next quarter surpassed analysts' expectations, signalling continued strong demand for its AI chips. CEO Jensen Huang has dismissed any notion of a hype cycle, stating that demand is 'incredible' with customer bookings extending into 2026.
The company's Q3 revenue reached $57 billion, a 62% increase year-over-year, driven by data centre growth and Blackwell adoption. Data centre revenue accounted for $51.2 billion, up 55% year-over-year. Nvidia anticipates over $500 billion in business through the end of 2026. This strong performance has boosted confidence in the AI sector, with analysts expecting AI to be the most important macro factor in 2026.
Nvidia's results have sparked a rally in tech stocks globally, with suppliers like TSMC and Samsung also seeing gains. Despite the optimism, some investors remain cautious about the high costs of data centre expansion and potential memory chip bottlenecks. However, the overall sentiment suggests a durable AI growth cycle, with Nvidia playing a central role.
