Nvidia (NASDAQ: NVDA) recently reported another blowout quarter. After guiding investors to expect revenue in its fiscal 2025 third quarter to be around $32.5 billion, the leading artificial intelligence (AI) company reported record quarterly sales of $35.1 billion for the period ended Oct. 27.
Exceeding expectations has become the norm, though, as AI capital spending continues to grow. Analysts had already baked in another big quarter, and Nvidia stock reflects much future success. Nvidia shares have dropped by about 7% since the fiscal third-quarter report even after some very bullish comments from Nvidia CEO Jensen Huang during the earnings conference call.
Are You Missing The Morning Scoop? Breakfast News delivers it all in a quick, Foolish, and free daily newsletter. Sign Up For Free »
But it was comments he made the week before Nvidia’s earnings report that should have investors most excited to own the stock. Huang was in Japan for an AI summit on Nov. 12, and he laid out a future vision that provides investors a clear picture of why it’s not too late to buy Nvidia stock.
While answering questions during the earnings call on Nov. 20, Huang addressed reports on manufacturing and quality-related issues for its latest Blackwell AI architecture. Blackwell’s success is critical for Nvidia heading into next year. Huang delivered some great news on that front:
Blackwell production is in full steam. In fact … we will deliver this quarter more Blackwells than we had previously estimated. It is the case that demand exceeds our supply.
When Huang was at an AI summit in Japan with SoftBank CEO Masayoshi Son the week prior, though, he laid out just how pervasive he expects Blackwell and Nvidia’s other AI-related platforms to be.
Huang and Son have a history together. In fact, Huang half-joked during the fireside chat that Son “wanted to lend me money to buy Nvidia — all of it.” “Now I regret not taking you up,” he said to Son, adding, “That was a great idea.” Son said that offer was made in 2016 shortly after SoftBank acquired semiconductor chip designer Arm Holdings for $32 billion. SoftBank still owns 90% of Arm after taking it public again in 2023.
The Nvidia CEO made an even more important revelation at the summit. He proclaimed: “Today we’re announcing that we’re partnering with SoftBank to bring and to build an AI infrastructure for Japan. Together we’re going to build Japan’s largest AI factory … out of Nvidia DGX.”