New York
\n \u00a0\u2014\u00a0<\/p>\n
\n Nvidia posted strong revenue and profits that exceeded Wall Street\u2019s expectations Wednesday. The closely watched result could prompt a sigh of relief across the stock market following growing concerns about an artificial intelligence bubble.\n <\/p>\n
\n Nvidia\u2019s 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.\n <\/p>\n
\n \u201cBlackwell sales are off the charts, and cloud GPUs are sold out,\u201d Nvidia CEO Jensen Huang said in a statement, a message that echoes his earlier arguments that fears of an AI bubble are overblown.\n <\/p>\n
\n The company also posted stronger-than-expected sales guidance of around $65 billion for the fourth quarter, another indicator that the AI spending spree isn\u2019t slowing anytime soon.\n <\/p>\n
\n Nvidia\u2019s stock (NVDA<\/a>) jumped 3.4% in after-hours trading immediately following the report.\n <\/p>\n \n Nvidia has become both the backbone and an emblem of the AI boom, with much of the industry\u2019s technology running on its chips. The world\u2019s most valuable public company<\/a> has also been central to this year\u2019s stock market rally \u2014 it accounts for roughly 8% of the S&P 500 and its deals with other tech firms have helped fuel their stocks, too \u2014 meaning that nearly all investors and 401k holders stand to be impacted<\/a> by Wednesday\u2019s results.\n <\/p>\n \n Fears of an AI bubble ahead of Nvidia\u2019s report had caused volatility across the stock market as investors adopted a risk-off attitude and dumped assets like bitcoin and AI stocks.\n <\/p>\n \n Shares of other tech stocks \u2014 including Meta, Microsoft, Amazon and Google \u2014 were in the green in after-hours trading following the Nvidia report, underscoring the chipmaker\u2019s impact on the wider market.\n <\/p>\n \n \u201cThis answers a lot of questions about the state of the AI revolution, and the verdict is simple: it is nowhere near its peak, neither from the market-demand nor the production\u2013supply-chain sides for the foreseeable future,\u201d Thomas Monteiro, senior analyst at Investing.com, said in emailed commentary following the report.\n <\/p>\n \n At the heart of the bubble concerns are the circular funding deals that Nvidia and other chipmakers have formed with AI companies, such as a $100 billion investment<\/a> in OpenAI in exchange for chip purchases that was announced in September. OpenAI Chief Financial Officer Sarah Friar further raised eyebrows earlier this month when she suggested<\/a> that the government should backstop the debt tech companies are taking on to build AI infrastructure \u2014 a statement the company later tried to walk back.\n <\/p>\n \n But the fears haven\u2019t stopped Nvidia from making more such deals. Anthropic on Monday committed<\/a> to buying $30 billion in computing capacity from Microsoft Azure, running on Nvidia chips, in exchange for an investment in the AI lab from both tech giants.\n <\/p>\n \n Huang has repeatedly batted down bubble concerns. At the company\u2019s GTC AI conference last month, he told CNN that people\u2019s willingness to pay for AI tools indicates that the technology is \u201cprofitable,\u201d even if most tech firms are now reinvesting the money they\u2019re earning into new infrastructure.\n <\/p>\n \n The fact that Nvidia\u2019s business continues to hum isn\u2019t surprising given that tech giants such as Meta, Microsoft, Amazon and Google all indicated<\/a> in their most recent earnings reports that they plan to continue hiking their AI infrastructure spending. Huang also laid out<\/a> at GTC the company\u2019s plans to get its technology into even more areas of life \u2014 from cell phone towers to self- driving cars.\n <\/p>\n","protected":false},"excerpt":{"rendered":"New York \u00a0\u2014\u00a0 Nvidia posted strong revenue and profits that exceeded Wall Street\u2019s expectations Wednesday. The closely watched…\n","protected":false},"author":2,"featured_media":301979,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,74],"class_list":{"0":"post-301978","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/301978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=301978"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/301978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/301979"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=301978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=301978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=301978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}