Nvidia beats earnings expectations, even as bubble concerns mount

"Nvidia posted strong revenue and profits that exceeded Wall Street's expectations Wednesday. The closely watched result could prompt a sigh of relief across the stock market following growing concerns about an artificial intelligence bubble. Nvidia's sales grew 62% year-over-year to $57 billion in the October quarter, ahead of the $54.9 billion Wall Street had projected, signaling that demand for AI chips remains strong even as more questions emerge about whether returns from the technology will keep up with the pace of AI infrastructure investments."

"It posted profits of $31.9 billion, up 65% from the year-ago quarter and also slightly above expectations. Blackwell sales are off the charts, and cloud GPUs are sold out, Nvidia CEO Jensen Huang said in a statement, a message that echoes his earlier arguments that fears of an AI bubble are overblown. Nvidia's stock jumped 2.6% immediately following the report. Nvidia has become both the backbone and an emblem of the AI boom, with much of the industry's technology running on its chips."

Nvidia reported October-quarter revenue of $57 billion, a 62% year-over-year increase that topped Wall Street forecasts, and posted $31.9 billion in profits, up 65% year-over-year and slightly above expectations. Sales of the Blackwell product line and cloud GPUs showed exceptionally strong demand, with cloud GPU capacity reportedly sold out. The company’s results lifted its stock and underscored Nvidia’s central role in AI infrastructure. Representing roughly 8% of the S&P 500, Nvidia’s performance is a major contributor to the broader market rally and affects a wide base of investors and retirement accounts.

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