Nvidia CEO Jensen Huang dismissed concerns about an AI bubble on Wednesday after the company posted stronger third-quarter results and issued a bullish outlook, according to Reuters.

Huang told analysts that demand for Nvidia chips remained strong across cloud and enterprise customers, repeating that the company has 500 billion US dollars in chip bookings through 2026. Nvidia said it expects fiscal fourth-quarter revenue of 65 billion US dollars, ahead of analysts’ estimates of 61.66 billion US dollars. It also projected an adjusted gross margin of about 75 percent.

Third-quarter revenue rose 62 percent, the first acceleration in seven quarters, with data-centre sales reaching 51.2 billion US dollars. Shares jumped 5 percent in extended trading, adding about 220 billion US dollars in market value, while lifting rivals AMD and major tech firms including Alphabet and Microsoft. Analysts cautioned, however, that concerns about the durability of AI spending remain.

Nvidia increased its spending on renting back its own chips to 26 billion US dollars in the quarter, more than double the previous period. The company’s revenue has also become more concentrated, with four customers accounting for 61 percent of sales. Nvidia has invested heavily in AI firms, including a plan to invest up to 100 billion US dollars in OpenAI and supply it with chips, prompting concern over a circular AI economy.

Growth pressures continue to surface. The company remains restricted in China due to US export controls, though the Commerce Department authorised the export of up to 35,000 Nvidia Blackwell chips to buyers in Saudi Arabia and the United Arab Emirates. Analysts noted that power, land and grid limitations could slow AI infrastructure build-out through 2026.

Asked about constraints, Huang said the scale and complexity of the industry required careful planning across supply chains, infrastructure and financing.