With all the talk today about Nvidia $NVDA being a "bubble", that becomes harder and harder to believe when you look at what the company actually shows at GTC and the outlook it gives. Jensen Huang isn't just tossing out vague AI dreams—he talks about concrete generations of chips (Blackwell, Vera Rubin, the next GPUs after 2027), the whole ecosystem of software and datacenters, and he adds an estimate of up to $1 trillion in cumulative orders for new AI systems by 2027, which is double what he said a year ago.
Moreover, GTC is turning from a conference show into something like an "annual reckoning for AI"—watched not only by investors but also by companies building their businesses on Nvidia hardware, from cloud providers to telcos and biotech. Every new chip and platform (Blackwell, Rubin, DGX, new AI servers) is tied to specific projects and contracts with major players, so it's not just a "story" but a pipeline of real investments into datacenters with a multi-year horizon.
The question for an investor now isn't just "is it a bubble?", but rather: will those who already own Nvidia keep buying more based on successive bullish theses from GTC, or is the current growth pace and valuation more a reason to "just hold" and wait to see that trillion-dollar outlook translate into revenue and EPS numbers in the coming years? How about you—are you more in buy-on-catalyst mode, adding on these catalysts, or are you just holding and watching to make sure it doesn't become too large a weight in your portfolio?
I also don't think we're in a bubble. Nvidia is the largest company in the world, and there's a reason for that.
It's not a bubble, because we have clear data and figures showing how strong that business is. They can afford to invest large sums, and it wouldn't be such a big problem if they lose some money.