Is AI Really in a Bubble? Nvidia's Jensen Huang Just Dropped a Reality Check

As Michael Burry’s bubble warnings echo across Wall Street and Tesla/Palantir valuations hit the stratosphere, one man isn’t buying the panic: Nvidia CEO Jensen Huang. Fresh off crushing Q3 earnings and raising guidance, he just laid out why the AI boom is just getting started—not imploding.

The Three Mega-Shifts Nobody’s Talking About Enough

Forget Moore’s Law. Huang identified three seismic platform transitions that dwarf anything we’ve seen in decades:

1. CPU → GPU Transition We’re moving from sequential computing (CPUs handle one task at a time) to parallel processing (GPUs handle thousands simultaneously). The cloud computing market represents hundreds of billions in spend. The switch? Only at its tipping point.

2. Classical ML → Generative AI This one’s already reshaping entire industries. ChatGPT writing code. Meta reporting 5% conversion lift on Instagram and 3% on Facebook from generative AI—not tweaks, actual revenue impact. Generative AI is now powering search, recommendations, ad targeting, and content moderation across the web.

3. The Agentic AI Frontier AI systems that make independent decisions based on massive datasets. Tesla’s Full Self-Driving and legal AI like Harvey are just the opening moves. Huang calls this “the next frontier of computing.”

Huang’s take: “Accelerated computing is foundational. Generative AI is transformational. Agentic and physical AI will be revolutionary.”

The Honest Truth? Nobody Really Knows

Here’s the thing: some data screams bubble (Tesla/Palantir valuations), other data screams “we’re early” (Nvidia’s execution, enterprise adoption ramping). History rhymes but rarely repeats.

The AI cycle could run for years before a meaningful pullback, or it could recalibrate tomorrow. Investors betting on AI should play it long-term, use dollar-cost averaging on high-flyers, and avoid timing the market.

Bottom line: Is it a bubble or a decade-long transformation? Ask again in 2035.