Nvidia CEO Jensen Huang predicts « crazy good » after strong Q4 results

Nvidia CEO Jensen Huang said on Wednesday that the chipmaker is heading for a « crazy good » fourth quarter, underscoring its dominant position at the heart of the global artificial intelligence boom.

In an interview on FOX Business Network’s « The Claman Countdown » following the stronger-than-expected third-quarter results, Huang said he expects the momentum to carry over into the next quarter.

« We guided to a much bigger quarter next quarter, » Huang said. « And so the guidance we’re giving is crazy good – I agree. But we’re at the very beginning of a very long-term build of basic human infrastructure, which is a calculation. »

Huang added that California based company lead a change in data processing.

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« We’re reinventing computing for the first time in 60, 70 years, » he said. « And so all the computers that are installed around the world will be modernized with accelerated computing and video graphics processors and artificial intelligence. And so this construction will continue for many more years. »

Earlier on Wednesday, Huang shrugged off worries about an AI bubble as the company surprised Wall Street with accelerating growth after several quarters of sluggish sales.

The chipmaker’s stellar third-quarter results and fourth-quarter forecast at least temporarily calmed investors’ worries that the AI ​​boom has outpaced fundamentals.

Global markets have been looking to a chip designer to determine whether investing billions of dollars in expanding AI infrastructure has led to an AI bubble.

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« There’s been a lot of talk about an artificial intelligence bubble. From our perspective, we’re seeing something very different, » Huang said on a call with analysts in which he touted how much cloud companies wanted Nvidia chips.

« We’re in every cloud. The reason developers love us is because we’re literally everywhere, » he said. « We’re everywhere from the cloud to on-premise to robotic systems, edge devices and computers. One architecture. Things just work. It’s amazing. »

He repeated last month’s prediction that the company had $500 billion in reserves for its advanced chips by 2026.

Shares of the artificial intelligence market bellwether jumped 5% in extended trading, helping the company add $220 billion in market value.

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Ahead of the results, doubts had pushed Nvidia’s stock down nearly 8% in November after it had risen 1,200% over the past three years.

The broader market is down nearly 3% this month.

After the results, S&P 500 futures rose 1%, pointing to traders waiting for USA the stock market opens sharply higher on Thursday.

The world’s most valuable company said it expected fourth-quarter revenue of $65 billion, plus or minus 2%, compared with an average analyst estimate of $61.66 billion, according to data compiled by LSEG.

It forecasts an adjusted gross margin for the period of 75 percent plus or minus 50 basis points, and CFO of Nvidia Colette Kress said the company plans to keep gross margins in the mid-70 percent range through 2027.

Nvidia’s third quarter sales were up 62 percent, their first acceleration in seven quarters. Sales from the data center segment, which makes up the bulk of Nvidia’s revenue, rose to $51.2 billion in the quarter ended Oct. 26. Analysts expected revenue of $48.62 billion.

Nvidia’s fortune boosted the stake of rival AMD and tech giants such as Alphabet. and Microsoft.

The chipmaker, which is considered the offspring of artificial intelligence, is strongly represented in about 673 different ETFs, according to Seeking Alpha.

Funds with high concentrations, between 21 percent and 27 percent of the tech giant, include VanEck Semiconductor, Strive US Semiconductor ETF and Grizzle Growth ETF.

As for the broader S&P 500 index, Nvidia is the benchmark’s largest stock according to the S&P 500 Dow Jones Index. Consequently, funds that track the S&P 500 must reflect it.

Ticker	Safety	Take	Change	Change %
SMH	VANECK SEMICONDUCTOR ETF	339.44	+6.15	+1.85%
UPSET	STRIVE US SEMICONDUCTOR ETF	65.35	+1.63	+2.56%
DARP	TIDAL TRUST II GRIZZLE GROWTH ETF	43.06	+0.68	+1.61%
QQQ	INVESCO QQQ TRUST – USD DIS	599.87	+3.56	+0.60%
SPY	SPDR S&P 500 ETF TRUST – USD DIS	662.72	+2.53	+0.38%
FLIGHT	VANGUARD S&P 500 ETF – USD DIS	609.35	+2.36	+0.39%

Therefore, a handful of the largest ETFs by size also hold Nvidia as a top holding, including Invesco’s QQQ at 10%, the SPDR S&P 500 ETF and Vanguard’s S&P 500 ETF both at 8%.

Nvidia shares are up 35 percent this year, outpacing the S&P 500’s 13 percent gain.

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You can catch the full interview Thursday on FOX Business Network’s « The Claman Countdown » at 3 PM ET.

Reuters contributed to this report.