• Nvidia forecasts fourth-quarter revenue of $65 billion, exceeding analyst expectations.
• Company reports third-quarter profits of $31.9 billion, up 65% year-on-year.
• CEO Jensen Huang dismisses AI bubble concerns, highlighting robust market demand.
• Sales from data centers surged to $51.2 billion, underlining the strong demand for AI chips.
• Concerns about customer concentration and sustainability of infrastructure spending remain.

Nvidia has forecasted its fourth-quarter revenue to reach $65 billion, exceeding the average analyst estimate of $61.66 billion. This forecast is bolstered by robust demand for AI chips from cloud providers amidst rising concerns of an artificial intelligence bubble, as company CEO Jensen Huang described persistent high demand for their products. This projection follows a strong performance in the third quarter, where Nvidia reported $57 billion in revenue and a net profit of $31.9 billion, up 65% from the previous year, according to Reuters, BBC, and New York Times.

The exceptional financial performance has calmed, at least temporarily, investor concerns over whether the rapid investment in AI infrastructure exceeds sustainable demand. "There’s been a lot of talk about an AI bubble," Huang remarked, asserting that the demand for AI chips is genuine and not merely speculative. He emphasized that Nvidia has secured approximately $500 billion in chip bookings through 2026, reinforcing the notion that their growth trajectory is built on solid demand rather than hype, according to Channel News Asia and Al Jazeera.

Nvidia's data center sales surged to $51.2 billion in the quarter ending October 26, significantly surpassing the expected $48.62 billion and highlighting the increasing reliance on AI chips across industries. Despite these strong numbers, some analysts warn of high customer concentration risk, with just four clients accounting for 61% of sales. Concern remains over whether this expenditure on AI infrastructure can be sustained over the long term given the massive capital outlays involved, according to Channel News Asia and India Times.

While the results have reassured some investors, concerns persist regarding sustainability and the potential for a bubble in the AI market. Industry observers are cautious about the rapid pace of investment, particularly as major cloud providers like Microsoft and Amazon heavily invest in AI data centers, raising questions about whether these firms can effectively utilize this capacity quickly enough to generate profits. Despite this, Huang remains optimistic about the evolution of AI technologies driving Nvidia’s growth, maintaining that they are positioned uniquely to capitalize on emerging demands, as reported by Reuters and South China Morning Post.