NVIDIA's stock price hits an all-time high, CEO Jensen Huang dismisses AI bubble concerns
NVIDIA CEO Jensen Huang refuted concerns about an AI bubble at the GTC conference, stating that the AI industry has entered a phase where customers are willing to pay real cash. The company is building seven new supercomputers for the U.S. Department of Energy and revealed that its chip order backlog for the next five quarters has reached $500 billion. NVIDIA's stock price rose nearly 5% on Tuesday, surpassing $200 for the first time and reaching a historic high of $203.15
According to the Zhitong Finance APP, Jensen Huang, CEO of NVIDIA (NVDA.US), stated at the GTC conference held in Washington on Tuesday that the company is building seven new supercomputers for the U.S. Department of Energy and disclosed that the order reserve for the Blackwell and Rubin series chips has reached $500 billion over the next five quarters. At the same time, he rarely responded directly to market concerns about the "AI bubble," stating that the AI industry has reached a turning point where "customers are willing to pay real cash for models," and that the commercial returns on expensive computing infrastructure have emerged, creating a "positive cycle."
Huang noted that this conference showcased NVIDIA's collaboration with companies such as Uber (UBER.US), Palantir (PLTR.US), and CrowdStrike (CRWD.US) in the commercialization of AI products, marking a shift from research validation to large-scale commercial deployment. In addition, the company announced a new network system that connects quantum computers with AI chips, indicating that the integration of traditional computing and AI computing power has entered a new stage. "We have reached a turning point of a virtuous cycle, which is indeed extraordinary," he told thousands of attendees at the conference center near the White House.
The seven supercomputers being built by NVIDIA for the U.S. Department of Energy will be partially used for nuclear arsenal maintenance and nuclear fusion energy research, with the largest project collaborating with Oracle (ORCL.US) and equipped with 100,000 Blackwell chips. Huang specifically thanked the Trump administration for its policy direction endorsing "national strength" in energy and advanced manufacturing, stating that it "changed the rules of the game." In terms of stock price, NVIDIA rose nearly 5% on Tuesday, breaking the $200 mark for the first time, reaching a historic high of $203.15 during intraday trading.
The company also announced a $1 billion investment in Nokia (NOK.US) to acquire a 2.9% stake and launched the Arc product line to enhance AI efficiency at 6G base stations. D.A. Davidson analysts stated that these announcements show NVIDIA is extending its influence into new markets beyond data centers, which, while not as large as the capital expenditures of major cloud providers like Microsoft (MSFT.US), Amazon (AMZN.US), Google (GOOG.US, GOOGL.US), and Meta (META.US), are expected to form future increments
