Jensen Huang Just Delivered Fantastic News for Nvidia Investors
Nvidia (NVDA -3.22%) is one of the most-watched companies on the planet right now, thanks to its dominance in the hot growth area of artificial intelligence (AI). The tech giant holds an 80% share of the AI chip market, and this has translated into triple-digit revenue growth for its data center business quarter after quarter. That’s why all eyes were on Nvidia this week when the company reported fiscal 2025 third-quarter figures.
This market powerhouse once again surpassed analysts’ estimates for revenue and earnings per share, delivered record revenue, and maintained gross margin of more than 74%. Importantly, Nvidia also was optimistic about the future, predicting a 70% increase in fourth-quarter revenue year over year. But what really stood out were words from chief executive officer Jensen Huang. In fact, he delivered fantastic news for Nvidia investors.
Image source: Getty Images.
Positioned to benefit from a $1 trillion market
First, though, a bit of background on Nvidia’s path so far. As mentioned, Nvidia is a major player in the world of AI, a market that’s worth about $200 billion today and is forecast to reach $1 trillion by the end of the decade. The company is well-positioned to benefit as it sells not only the best-performing chips around, but also related products and services — such as networking tools and enterprise software. The company offers a full stack of AI, so customers can turn to Nvidia for any of their AI needs.
This has translated into soaring earnings and share-price performance, as well as major gains in free cash flow and return on invested capital over time.
Today, Nvidia has reached a particularly key moment. It’s in the process of launching its Blackwell architecture and best-performing chip yet. The company already has shipped 13,000 sample Blackwell chips to customers, and the Blackwell platform is in full production.
What about the fantastic news delivered by Nvidia’s chief? “Blackwell production is in full steam,” Jensen Huang said during the company’s earnings call. “We will deliver this quarter more Blackwells than we had previously estimated.”
A comment that may eliminate one of Nvidia’s biggest risks
This comment is key because it may eliminate one of the company’s biggest risks: potential supply chain or production snags early in the launch that could threaten delivery volume. Of course, demand still exceeds supply, and Nvidia expects this to continue. But this isn’t due to a problem with Nvidia’s processes. Instead, it’s because we’re in the early days of this AI revolution, and everyone aims to get on board with the best possible products — and Blackwell is at the top of the list.
The increase in deliveries equals more good news: Nvidia said it’s on track to beat its previous expectations for Blackwell revenue of “several billion dollars” in the fourth quarter.
There’s reason for investors to be confident about Nvidia’s ability to launch and ramp-up production of Blackwell — and to immediately start generating major revenue from this new platform. Blackwell is set to become the company’s new revenue driver, considering the fact that the world’s major tech companies are rushing to get in on the platform. Microsoft‘s Azure, for example, recently said on X (formerly known as Twitter) that it became the first cloud service provider to run the Blackwell system.
Will Nvidia’s shares rise?
All of this may not boost Nvidia’s shares right away for two reasons. First, considering the stock’s path so far, some investors may lock in gains at this level — or wait to buy on a dip. After all, stocks generally don’t rise in one straight line forever. And second, Nvidia’s forecast for fourth-quarter revenue showed a slowing of growth, to about 70% year over year as I mentioned above, from the third-quarter’s 94% growth — disappointing some Nvidia watchers.
However, it’s important to keep in mind that Nvidia, ramping-up production of a major new architecture, has reached a transition point. It faces the costs of this process, and at this stage, won’t be as efficient as it will be several months down the road. A potential — and minor — slowdown in the next quarter doesn’t change the bright long-term outlook for this AI giant.
All of this means that Jensen Huang’s words offer Nvidia shareholders reason to celebrate. And any potential dip in the share price offers them — and newcomers, too — an opportunity to pick up shares of this top AI player.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.