Tipping point or bubble? Nvidia CEO sees AI transformation while skeptics count the risks

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Tipping point or bubble? Nvidia CEO sees AI transformation while skeptics count the risks

By Arsheeya Bajwa,Stephen Nellis
Publication Date: 2025-11-20 02:44:00

  • Nvidia CEO brushes off market talk of an AI bubble
  • Chip giant discloses majority of sales rely on four customers
  • Circular deals, infrastructure challenges among market concerns
SAN FRANCISCO, Nov 19 (Reuters) – Nvidia (NVDA.O), opens new tab CEO Jensen Huang says he does not see an AI bubble, but rather a tipping point.

In his view, the kind of computing his company specializes in will come to suffuse everything from writing code to running legions of robots in the everyday world.

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But a growing band of market skeptics are concerned the only way off a tipping point is down.

The chip giant on Wednesday produced results and forecasts that beat expectations, allaying immediate fears. But there are longer-term worries that Nvidia’s growth could be crimped by factors beyond the control of even the most valuable listed company in human history, now worth more than $4.5 trillion.

In a regulatory filing, Nvidia disclosed the majority of its booming business rests on four unnamed customers.

In the third quarter, 61% of its $57 billion in revenue came from those customers, up from a 56% concentration among four customers in the previous quarter. Past announcements suggest they could include Microsoft (MSFT.O), opens new tab, Meta (META.O), opens new tab and Oracle (ORCL.N), opens new tab.
Nvidia also doubled the money it spends renting back its own chips from cloud customers to $26 billion, up from $12.6 billion in the second quarter, with those contracts stretching to at…

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