Nvidia Gloats as It Defies AI Bubble With Massive Revenue

"AI chipmaker Nvidia reported a massive $57 billion in quarterly revenue on Wednesday, a whopping increase of 62 percent compared to the same period last year, exceeding Wall Street's wildest expectations. The numbers appear to have calmed nervous investors, who had been palpably nervous about a looming AI bubble during the days leading up to the earnings call. A major tech selloff highlighted ongoing concerns of an astronomical gap between sky-high valuations and relatively meager revenues."

"But considering Nvidia is selling shovels during an ongoing AI gold rush, the chipmaker was bound to mint astronomical amounts of money either way. Nvidia CEO Jensen Huang used the opportunity to rally weary investors, reminding them there's plenty of gold to be panned. "There's been a lot of talk about an AI bubble," Nvidia CEO Jensen Huang told investors during Wednesday's earnings call. "From our vantage point, we see something very different.""

"The stakes are enormous as the booming AI industry continues to concentrate market value at an astonishing rate. Nvidia accounts for roughly eight percent of the entire S&P 500 in terms of market value, meaning that countless investors are tied to the company's fate. The industry's market value of $4.4 trillion would make it the fourth-largest economy after the United States, China, and Germany by GDP."

Nvidia posted $57 billion in quarterly revenue, a 62% year-over-year increase that exceeded Wall Street expectations. Strong results eased investor fears about an AI bubble after a major tech selloff raised concerns about valuation gaps. Nvidia benefits as a critical hardware supplier during the AI surge, generating enormous profits by selling GPUs and other infrastructure. CEO Jensen Huang rejected bubble claims and emphasized broad adoption, saying Nvidia is present across major cloud providers. Shares rose over four percent and the S&P 500 gained nearly two percent after the report. Nvidia represents roughly eight percent of S&P 500 market value, concentrating investor exposure.

Read at Futurism