Nvidia quarterly earnings show immunity to AI bubble fears as it cashes in on data center boom

"Nvidia reported 75% year-over-year growth of its data center revenue to $62.3bn. The world's most valuable publicly traded company, Nvidia has dominated the chip market as its processing units have become the backbone of the artificial intelligence boom. Investors have been more skeptical in recent months regarding the massive amount of spending that big tech companies have poured into advancing their AI products."

"The chipmaker reported earnings of $1.62 per share, beating the $1.53 per share that Wall Street analysts estimated. Its overall revenue for the quarter was $68.13bn, more than analysts' prediction of $66.2bn in revenue. Shares in the company rose by around 3% in after-hours trading immediately following the earnings report."

"Throughout the 2024 and 2025 fiscal years, Nvidia beat Wall Street's expectations every quarter. Nvidia's growth, meanwhile, has acted as a reassurance to the market, with a stock rally on Wednesday ahead of the company's earnings report."

Nvidia reported quarterly earnings significantly surpassing Wall Street expectations, with total revenue of $68.13bn against predicted $66.2bn and earnings per share of $1.62 versus estimated $1.53. The company's data center business, which generates the vast majority of revenue, grew 75% year-over-year to $62.3bn, fueled by tech industry's substantial AI infrastructure spending. As the world's most valuable publicly traded company, Nvidia has dominated the chip market with its processing units becoming central to the artificial intelligence boom. Stock prices rose approximately 3% in after-hours trading following the announcement. Despite investor skepticism about massive tech spending on AI advancement, Nvidia's consistent quarterly outperformance throughout 2024 and 2025 has reassured markets. CEO Jensen Huang emphasized customer investment in AI compute infrastructure.

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