An upcoming Nvidia quarterly report could clarify whether equity gains driven by artificial intelligence represent a sustainable technological boom or an overhyped market bubble. Nvidia surpassed a $4 trillion market value last month and added about $500 billion in shareholder wealth after a 13% rise. Nvidia's financials serve as a key AI barometer because the company supplies most chips powering AI in vast data centers. The company's surge extends a rise from about $400 billion in early 2023 after the late 2022 release of ChatGPT. AI fervor has lifted the technology industry and helped drive a 68% gain in the S&P 500 since end-2022. Recent concerns include high AI pilot failure rates and commentary suggesting a possible bubble.
Chipmaker Nvidia will release a quarterly report Wednesday that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that's still gathering momentum. Nvidia became the first publicly traded company to surpass a market value of $4 trillion last month, and its stock price has gained another 13% since then to create an additional $500 billion in shareholder wealth.
The latest financial results are due on Wednesday afternoon. They have become a key AI barometer during the past two years because Nvidia makes most of the chips that power the technology in vast data centers at the center of the boom. This summer's run-up has continued Nvidia's jaw-dropping rise from early 2023, when the company's market value was hovering around $400 billion.
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