Nvidia Shares Pop as CEO Huang Dismisses AI Bubble Fears, Saying ‘We See Something Very Different’

Nvidia cooled Wall Street’s AI nerves after Jensen Huang pushed back on “AI bubble” fears and reaffirmed the company’s path toward a $500 billion accelerator market, sending the stock and the broader AI trade sharply higher.

Nvidia (NVDA) walked into earnings with Wall Street on edge. Stocks tied to the AI trade had been sliding, investors were uneasy, and chatter about an “AI bubble” was getting louder by the day. Then Jensen Huang opened the earnings call and said the one thing markets desperately needed to hear: “There has been a lot of talk about an AI bubble. From our vantage point, we see something very different.”

These words were enough to flip sentiment instantly. Nvidia had already beaten earnings expectations and guided for $65 billion in fourth-quarter revenue, but the CEO’s confidence sealed the deal. Nvidia shares jumped more than 5% in after-hours trading, pulling the broader AI complex higher and giving Wall Street its first real breath of relief in weeks.

Huang then doubled down, saying: “We are working into our $500 billion forecast, and we are on track for that… And there is definitely an opportunity for us to have more on top of the $500 billion that we announced.” This reassurance became the emotional reset investors wanted, and needed.

Nvidia Sparks a Broader Market Lift as AI Spending Surges

Nvidia’s results landed at the perfect time. Stocks had just logged their worst November since 2008, and the Federal Reserve’s latest meeting minutes carried a hawkish tone that made investors even more nervous. But Nvidia’s momentum overpowered the gloom.

AI-linked stocks jumped across the board, and analysts pointed to Nvidia as the best real-time barometer of AI infrastructure demand. As Saxo Bank strategist Ruben Dalfovo put it: “Nvidia is the clearest read on AI infrastructure spending that public markets have.”

He highlighted Nvidia’s deep ties to Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and a fast-growing universe of AI-driven companies. Their spending plans paint a massive picture, showing roughly $520 billion in AI investment next year and climbing toward $700 billion by 2027.

This investment wave is why investors shrugged off the Fed’s warnings and currency-market jitters, and why Nvidia stock led the rebound.

Big Tech’s Capex Plans Reinforce Nvidia’s Outlook

Over the past month, Microsoft, Amazon, and Alphabet each boosted capital-spending forecasts tied to AI buildouts. This spending directly fuels Nvidia’s order book for chips like Blackwell and Rubin. The takeaway is that demand isn’t cooling. In fact, it’s accelerating.

That stood in sharp contrast to fears that AI enthusiasm was fading. Instead, the data suggests the AI infrastructure cycle is only widening, not slowing down. By early Thursday, Nvidia’s message was cutting through every macro headline.

Investors Hear Exactly What They Wanted

Even long-term skeptics couldn’t ignore how aligned the fundamentals and narratives suddenly looked. Chris Zaccarelli of Northlight Asset Management captured the sentiment perfectly:

“In a few years we may look back at this time and point to signs that it was a bubble… But for now, the largest technology companies in the world are extremely profitable, they’re reinvesting billions of dollars into data centers, servers, and chips, and the spending is real.”

This line captures why Nvidia’s earnings reshaped the market mood. Investors could finally let out a sigh of relief that the AI cycle is intact, and the spending behind it is real money, not hype. Sometimes that’s all Wall Street needs.

Is Nvidia Stock a Buy, Hold, or Sell?

Wall Street remains broadly optimistic on Nvidia. Based on 39 analyst ratings over the past three months, Nvidia holds a Strong Buy consensus, with 37 Buy ratings, one Hold, and one Sell.

Analysts see more upside ahead. The average 12-month NVDA price target is $243.09, which implies a 30.33% gain from the most recent share price.

See more NVDA analyst ratings

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