Nvidia eases fears but Al bubble-watchers are still not convinced

Never before has so much money hung on a single quarterly earnings report. Investors have been fretting for weeks about whether chip-making giant Nvidia would meet the market's exalted expectations or fall short and potentially pop what many fear is a massive stock market bubble based on excessive optimism about the economic benefits of AI.

- Matthew Bishop

Relief was widespread on Wednesday evening when the world’s biggest company - which last month became the first to be valued (briefly) at $5tn — beat profit forecasts, and its CEO, Jensen Huang, confidently predicted even better results to come. In the third quarter, Nvidia banked revenues of $57bn (£44bn), up 62% year-on-year, and profits of $31.9bn.

"There has been a lot of talk about an AI bubble," said Huang. "From our vantage point, we see something very different."