Last week’s Q3 Nvidia earnings highlighted how powerful the artificial intelligence boom could be.
The company exceeded expectations and as Samy Sriram, market analyst at online investment platform Stake, said, “Nvidia has become the most important stock in global markets, given its pivotal role in the AI trend. Results were strong overall with the firm breezing past EPS estimates — primarily driven by its data centre revenue, which is up by 112% year-on-year.
“Investors were closely watching news around the company’s next-generation Blackwell AI chips, particularly following reports of overheating that landed earlier in the week, and questions around supply constraints.
"On the earnings call, CEO Jensen Huang was positive about Blackwell, making it clear that demand is expected to exceed supply for several quarters in FY26, and will exceed previous revenue estimates.
“But given how Nvidia’s chips offer the best performance for AI workloads on the market, demand was expected to be high. In addition to overall revenue projections, the slight dip in shares during the aftermarket reflects ambiguity as to when, and how, supply constraints will be resolved. That said, continued investment in AI from hyperscalers means Nvidia is in an enviable position.”
New AI model
Keeping up its pace, this week Nvidia introduced a new AI model, Fugatto (short for Foundational Generative Audio Transformer Opus 1), designed to generate music, modify voices and create novel sounds. The technology targets creators in the music, film and video game industries but is not slated for immediate public release.
The Santa Clara, California-based company, the world's largest supplier of chips and software for AI systems, described Fugatto as capable of generating sound effects and music from text prompts.
Unique among generative AI technologies, it can also modify existing audio, transforming piano notes into vocal lines or altering the mood and accent of spoken words.
"If we think about synthetic audio over the past 50 years, music sounds different now because of computers, because of synthesizers," said Bryan Catanzaro, Nvidia's vice president of Applied Deep Learning Research. "I think that generative AI is going to bring new capabilities to music, to video games and to ordinary folks that want to create things."
Fugatto joins a growing suite of AI technologies from startups like Runway and tech giants such as Meta Platforms that generate audio or video from text descriptions. Nvidia emphasised that the model was trained on open-source data and is evaluating the implications of a broader release.
"Any generative technology always carries some risks, because people might use that to generate things that we would prefer they don't," Catanzaro said. "We need to be careful about that, which is why we don't have immediate plans to release this."
The announcement comes amid growing tensions between Hollywood and tech companies over AI usage, highlighted by Scarlett Johansson's recent accusation against OpenAI for allegedly imitating her voice.
OpenAI and Meta have similarly refrained from setting release timelines for their audio and video generation technologies, citing concerns over misuse, including misinformation and copyright infringement.