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

Markets miscalculated the threat posed by artificial intelligence to software companies, Nvidia CEO Jensen Huang said on Wednesday, just hours after the chip giant’s stellar earnings release that beat all expectations.

In an interview with CNBC, Huang noted that software companies like ServiceNow will only find AI agents to speed up their business.

“I think the markets got it wrong,” Huang said. “No one will provide better service than ServiceNow, and they will find agents that are truly fine-tuned and optimized for the business using the tools they have.”

“Eventually, we need tools that will finish their job and put the information back in a way that we can understand,” he told CNBC in the interview.

Huang’s comments come as Nvidia posted a stunning 73% year-over-year increase in fiscal fourth-quarter revenue to $68.1 billion.

Jensen Huang says artificial intelligence will get better

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

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

Nvidia CEO stated that the agency AI revolution has led the AI ​​industry to reach a decisive turning point. “We have now seen the impact of agency AI and the usefulness of agents around the world.”

He added that businesses around the world are seeing “incredible” demand for agent AI systems that can make decisions on behalf of humans and act autonomously.

Huang noted that the rapid adoption of AI tools like Anthropic’s Claude and OpenAI’s Codex is proof that AI is now generating significant returns for both cloud companies and consumers.

Speaking to analysts, he said the traditional software industry has been fundamentally transformed by this adoption.

“Software that used to run on computers has now entered AI,” he said, “and that translates directly into growth, which translates directly into revenue for companies that implement AI solutions.”

Nvidia posted spectacular growth in the fourth quarter

Nvidia has reported blockbuster quarterly results that beat Wall Street expectations. Revenue increased 73% to $68.1 billion compared to $39.3 billion a year ago; This reflects the growing and insatiable demand for AI chips.

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

The company’s data center division continued to be the driver of growth. Revenue from this segment reached a record $62.3 billion in the quarter, up 75% from the previous year and 22% from the previous quarter.

Guidance was also better than expected. Nvidia said its revenue for the fiscal first quarter will be $78 billion, plus or minus 2%, compared to analysts’ expectations of $72.6.

The company said it did not account for data center revenue from China.

Following the results, company shares rose more than 3% in extended trading.