What AI bubble? Nvidia posts record $68 billion quarterly revenue and $78 billion forecast, as Jensen Huang cites ‘skyrocketing’ adoption of agents

Fortune

by Amanda Gerut

February 25, 2026

AI-Generated Deep Dive Summary

Nvidia delivered a stunning financial performance, posting record quarterly revenue of $68.1 billion, surpassing expectations and showcasing its pivotal role in the AI-driven economy. Despite concerns about potential overinvestment in AI, CEO Jensen Huang emphasized that compute power is now directly linked to revenue growth. He highlighted the skyrocketing adoption of AI agents, which are driving unprecedented demand for computing resources. This trend, coupled with Nvidia's strategic inventory management and a robust pipeline of supply commitments, has positioned the company as a key beneficiary of the ongoing AI race. The article underscores the critical importance of compute infrastructure in fueling AI growth. Huang explained that without the ability to generate AI tokens—small data units used in chatbots and other AI applications—cloud providers would struggle to expand their offerings. This dynamic has created a virtuous cycle where massive capital expenditures on AI are translating into sustained revenue growth for companies like Nvidia. The $78 billion revenue forecast for the next quarter further reinforces this trajectory, signaling continued confidence in the AI market's staying power. For businesses and investors, the implications of these developments are significant. The rapid pace of AI adoption suggests that compute demand will remain strong, offering opportunities for tech companies and cloud providers alike. While concerns about overinvestment persist, Nvidia's performance indicates that the AI economy is still in its early stages, with exponential growth potential. This aligns with broader trends, as hyperscalers like Amazon, Microsoft, and Google are investing heavily in AI infrastructure, creating a competitive landscape where compute power is king. In summary, Nvidia's record-breaking earnings and Huang's bullish outlook highlight the transformative impact of AI on the global economy. The company's ability to capitalize on this demand not only solidifies its position as a leader in the AI race but also signals that the AI spending boom is far from overblown. For businesses, staying ahead in this new era requires a deep understanding of how compute power and AI innovation will shape future growth opportunities.

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Originally published on Fortune on 2/25/2026