When the "AI bubble theory" is lingering, NVIDIA Corporation (NVDA.US) breaks through its performance! The demand for AI computing power continues to skyrocket with data center revenue increasing by a whopping 66%.

The global company with the title of "the most important stock on Earth" and the "AI chip superpower" at the core of the artificial intelligence frenzy, NVIDIA Corporation (NVDA.US), whose market value once exceeded $5 trillion, has given an extremely strong revenue outlook for the current quarter and explosive performance growth data far exceeding market expectations. This has greatly deflated the recent market hype surrounding the "AI bubble" and alleviated investors' concerns about the imminent decline of the global AI spending frenzy. After the announcement of NVIDIA Corporation's financial report and performance outlook, the stock price of the company, which currently has a market value of approximately $4.5 trillion, surged over 6% in after-hours trading on the US stock market. The chip sector in the US stock market, especially those leaders in the AI chip industry closely associated with AI training/inference systems, such as Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, Broadcom Inc., AMD, and Micron Technology, Inc., all saw significant increases in their stock prices, reversing the recent downward trajectory caused by the AI bubble narrative that had swept the market. Undoubtedly, global investors once again felt the immense impact of the "AI faith" brought by the AI investment frenzy, driving semiconductor and AI application software stocks significantly higher. The last time such a massive AI impact was felt was when NVIDIA Corporation's total market value surpassed $4 trillion in July, making it the first public company to achieve this milestone. The continued explosion in demand for AI computing power globally, coupled with the increasingly substantial AI infrastructure investments led by the US government and tech giants pouring huge sums into building large data centers, signifies that the global "AI faith" sweeping through the AI computing industry, dominated by NVIDIA Corporation, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, and Broadcom Inc., is far from over. Investors are betting that the stock prices of companies leading the AI computing industry chain will continue to soar, defying any concerns about a downturn in AI spending frenzy. With a market share of 90% in the AI accelerator field, NVIDIA Corporation, the "AI chip superpower," announced in its recent financial statement that it expects total revenue for the fourth quarter of the 2026 fiscal year ending in January to be around $65 billion, far exceeding the average analyst expectation of approximately $62 billion. This expectation has been continually revised upwards since the strong performance reports of tech giants such as Alphabet Inc. Class C and Microsoft Corporation in late October. Despite this, NVIDIA Corporation's official forecast still surpasses the continually adjusted analyst expectations, underscoring the explosive demand for AI computing infrastructure and the company's performance trajectory since 2023. This latest outlook indicates that the demand for NVIDIA Corporation's AI GPU computing clusters remains strong. These expensive and high-performance AI chips are used to develop AI models like the GPT series and provide powerful computing efficiency for AI inference tasks. The latest performance outlook suggests that NVIDIA Corporation's total revenue will increase by a whopping ten times compared to the same period three years ago. Furthermore, NVIDIA Corporation's net profit, as disclosed in the latest financial report, even surpasses the combined revenue of its two long-time competitors, AMD and Intel Corporation, in their most recent quarterly reports. As concerns about the sustainability of the extravagant spending on AI computing infrastructure and the continuing demand for massive AI computing needs in AI application ecosystems such as ChatGPT, Claude, and Grok AI accumulate, NVIDIA Corporation's exceptionally strong performance has shattered worries about the demand for AI computing power. The "AI chip superpower" crushes the "AI bubble narrative" with exceptionally strong performance "The demand for AI computing power continues to show exponential growth," NVIDIA Corporation CEO Jensen Huang, known as the "AI father," stated. "AI is omnipresent and omnipotent, capable of achieving anything you want to accomplish." "There is a lot of talk about an AI bubble, but from our perspective, I don't see a bubble. The reality about the demand for AI computing power is completely different," Huang said during an earnings conference call. "The sales of the latest generation Blackwell architecture AI GPU far exceeded expectations, cloud GPUs are sold out, and the computing demand for AI training and inference continues to accelerate exponentially. We are in a virtuous cycle of the AI era." Regarding the recent market focus on the "real economic life span of GPUs," NVIDIA Corporation CFO Colette Kress provided a positive responsepointing out that the A100 GPUs shipped six years ago are still operating at full capacity. This also refutes recent doubts raised by "big short" Michael Burry, who suggested that AI GPUs and similar devices only have a lifespan of 2-3 years. Burry even warned that tech giants are playing a dangerous accounting "trick" to artificially boost short-term profits. After the release of the financial report, NVIDIA Corporation's stock price surged over 6% in after-hours trading. As of the Wednesday close, the stock has risen by 39% year-to-date, significantly outperforming the S&P 500 and Nasdaq 100 indices. The unprecedented milestone of surpassing $5 trillion in market value on October 29 marked a peak, but the stock price of NVIDIA Corporation has declined by 7% since then due to the AI bubble narrative. The latest financial data shows that in the third quarter of the 2026 fiscal year ending on October 26, NVIDIA Corporation's total revenue surged by 62% year-on-year, reaching an all-time high of $57 billion, an increase of 22% compared to the previous quarter, exceeding the analyst consensus estimate of $55.2 billion. Excluding certain items, the non-GAAP earnings per share were $1.30, compared to the analyst consensus of $1.26. On the profit side, under GAAP standards, NVIDIA Corporation's Q3 net profit increased by 65% year-on-year to $31.9 billion, with an increase of 21% compared to the previous quarter, while operating profit surged by 65% to $36 billion year-on-year. NVIDIA Corporation's performance and outlook for the next quarter prove that the company is still the undisputed "strongest seller" in the global AI field, leveraging its 90% market share in AI training/inference. With the AI infrastructure investment frenzy driven by major tech companies continuing until 2030, the scale of this wave of AI infrastructure investment is expected to reach $3-4 trillion. Recently, the prices of high-performance storage products in the global DRAM and NAND series have continued to rise, and the high valuation AI startup company OpenAI has reached a transaction worth over $1 trillion, together with the "king of chip manufacturing" Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, storage giants like SanDisk, Samsung, and SK Hynix announcing extraordinary performance beyond expectations and raising their revenue growth expectations for 2025 and 2026. All of this significantly strengthens the long-term bullish narrative for the AI GPU, ASIC, HBM, data center SSD storage systems, liquid cooling systems, core power equipment, and other AI computing infrastructure sectors. The wave of AI computing demand, particularly from generative AI applications and AI intelligent agents dominating the inference side, is poised to drive the market into exponential growth, leading to a massive boost in investments in AI computing infrastructure. According to NVIDIA Corporation CEO Jensen Huang, this demand is expected to create massive scale revenue for NVIDIA Corporation, mainly from AI GPUs like the Blackwell and Rubin series, excluding revenue from its automotive chips and other key business segments, and excluding any expectations from the Chinese market. Selling revenue from AI accelerators in China has not been included in the company's predictions. Some investors are concerned about the large deals NVIDIA Corporation has made with its customers, fearing that this economic cycle is a "self-fulfilling prophecy" in the AI computing sector. These deals involve NVIDIA Corporation's investments in AI startups like OpenAI and Anthropic, raising questions about whether these agreements are creating an "artificial demand" for NVIDIA Corporation's AI GPU products. At the same time, some of NVIDIA Corporation's competitors are becoming increasingly optimistic about their ability to challenge the company's monopoly position in the AI chip market. For example, earlier this month, AMD predicted that its AI chip business would see exponential growth and praised the prospects of its upcoming AI computing clusters. Data center operators are also increasingly opting to use more self-designed AI ASIC chips, reducing their reliance on NVIDIA Corporation's AI GPU clusters. The financial giant Loop Capital recently raised its target price for NVIDIA Corporation from $250 to $350, implying a market value exceeding $8 trillion, the highest level on Wall Street. More and more investment firms are eyeing the milestone target of $300. A 12-month target price of $300 suggests that NVIDIA Corporation's market value will surpass $7 trillion. As of the Wednesday close on the US stock market, NVIDIA Corporation's stock price was $186.52. According to Wall Street titans Morgan Stanley, Citi, Loop Capital, and Wedbush, the AI hardware-led global AI infrastructure investment frenzy is far from over and is only just beginning. Fueled by the unprecedented "AI inference-side computing demand storm," this ongoing wave of AI infrastructure investment is likely to scale up to $3-4 trillion until 2030. In conclusion, the continued surge in demand for AI computing power, driven by the widespread adoption of generative AI applications and the growing acceptance of AI technology, is reshaping the landscape of the industry. NVIDIA Corporation, as the key player in the AI chip market, is well-positioned to benefit from this trend and maintain its leadership in the evolving AI ecosystem.