What AI bubble? Nvidia posts record $68 billion quarterly revenue and $78 billion forecast, as Jensen Huang cites ‘skyrocketing’ adoption of agents

Once again, Nvidia CEO Jensen Huang had a simple response for investors who are worried that the AI spending race might be overblown.

During the $4.8-trillion-valuation chip supplier’s earnings call on Wednesday, analysts pressed Huang on whether major cloud customers—whose capital expenditures are nearing $700 billion a year—could keep up the pace. According to Huang, it’s a no-brainer. In the new AI-based economy, compute and revenue are essentially the same thing. Without the capacity to generate AI tokens, which are the small chunks of chatbot outputs in the form of words and text, cloud providers don’t have way a to meaningfully grow.

“I am confident in their cash flow growing,” said Huang, in response to a question. “And the reason for that is very simple.”

“We have now seen the inflection of agentic AI and the usefulness of agents across the world and enterprises everywhere, and you’re seeing incredible compute demand because of it,” Huang continued. “In this new world of AI, compute is revenues. Without compute, there’s no way to generate tokens. Without tokens, there’s no way to grow revenues.”

So, the hundreds of billions worth of capital expenditures now flow into AI, which eventually translates into growth, which translates “directly to revenues,” said Huang.

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