Jensen Huang says ‘markets got it wrong’ after Nvidia posts stellar fourth quarter results defying AI bubble worries

Nvidia CEO Jensen Huang on Wednesday said that the markets had miscalculated the threat AI poses to software companies, hours after the chip behemoth posted stellar earnings, beating all expectations.

In an interview with CNBC, Huang said software companies like ServiceNow are going to come up with AI agents that only accelerate their work.

“I think the markets got it wrong,” Huang said. adding, “Nobody is going to service better than ServiceNow, and they’re going to come up with agents that are really fine-tuned and optimised for the work that uses the tools that they have.”

He added, “In the end, we need the tools to finish their work and put the information back in a way that we can understand.”

Huang's comments came as Nvidia posted a smashing 73% year-on-year surge in its fourth-quarter fiscal revenue at $68.1 billion.

AI to get better, says Jensen Huang

Speaking to investors and analysts during a conference call, Huang predicted that AI will not go anywhere and will only get better.

“AI is here, AI is not going to go back…AI is only going to only get better from here,” he said.

The Nvidia CEO said the agentic AI revolution had led to the AI industry reaching a decisive turning point. “We have now seen the inflection of agentic AI and the usefulness of agents across the world.”

He added that enterprises around the world are seeing “incredible” demand for agentic AI — systems that can take decisions and act autonomously on behalf of humans.

Huang pointed out that the rapid adoption of AI tools like Claude by Anthropic and Codex by OpenAI was proof that AI was now delivering significant returns for cloud companies and consumers alike.

Speaking to analysts, he said that this adoption was fundamentally transforming the traditional software industry.

“What used to be software running on computers has now gone into AI,” he said, “and that translates directly to growth, and that translates directly to revenues” for companies deploying AI solutions.

Nvidia posts stellar growth in fourth quarter

Nvidia reported blockbuster quarterly results that blew past Wall Street expectations. Revenue grew 73% to $68.1 billion from $39.3 billion a year earlier, reflecting a growing and insatiable demand for its artificial intelligence chips.

The company's profit nearly doubled to roughly $43 billion, or $1.76 per share, from $22.1 billion, or 89 cents per share, the company said in a press release on Wednesday.

The company's data centre division remained the growth engine. Revenue from that segment hit a record $62.3 billion in the quarter, up 75% from a year earlier and up 22% from the prior quarter.

Guidance was also better than expected. Nvidia said its revenues for the fiscal first quarter will come in at $78 billion, plus or minus 2%, as compared to analysts' expectations of $72.6 billion.

The company said it was not factoring in its data centre revenues from China.

Shares of the company rose over 3% in extended trading after the results.