Nvidia's Huang Argues AI Shift Is Real as Bubble Debate Heats Up

Last month, Nvidia forecasted quarterly revenue of $108 billion, an increase from $96.2 billion. According to CEO Jensen Huang, the growth signals a transition into what he terms a "high production ramp."

The argument was laid out in a lengthy interview released on Sunday, following recent warnings from other AI executives that sent chip stocks down and intensified talk of a bubble.

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According to Huang, the AI sector dedicated its initial 10 to 15 years to research. That shifted in the current year as the technology proved practical and AI product outputs began to generate revenue.

He argued that firms like OpenAI and Anthropic are transitioning from lab environments to product-focused operations. Both are expanding their computing power at a pace unmatched by any previous company.

"…in the last six months practically the industry has shifted to high production ramp mode," Jensen Huang told CBS.

Huang also rejected predictions that AI might wipe out humanity by 2030, stating that such claims lack scientific basis.

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The market has challenged that perspective. On September 14, Nvidia's shares dropped 3.4% following endorsements from Anthropic's Dario Amodei, OpenAI's Sam Altman, and Elon Musk for a slower pace of development, triggering a broad decline in chip stocks. Amodei stated that the industry had been dishonest about AI risks for an extended period.

Investor Michael Burry has increased his short position in Nvidia, describing the stock as overpriced. At the same time, opposition to local data centers continues to grow, a battle that Huang acknowledged the industry mismanaged.

Nvidia's market capitalization stands at approximately $5.3 trillion, making it the world's most valuable publicly traded company. That links Huang's reputation to the expenditures he advocates.

President Donald Trump has sided with Huang, labeling AI safety concerns as a hoax and appointing an AI czar.

"I'm telling you it's all a hoax. The data centers are great. They make people wealthy. They make states wealthy. AI is bigger than the internet. These people are playing right into the hands of China. We're not going to let that happen," Trump told Jensen Huang in a live phone call.

Huang noted that he plans to attend a state dinner with Chinese President Xi Jinping next week, where he intends to advocate for common AI standards. Other executives such as Sam Altman and Elon Musk are also expected to be present.

Nvidia's forthcoming earnings release will indicate whether the ramp-up that Jensen Huang describes continues to gain speed.