AI chip giant Nvidia on Wednesday reported profit of $31.9 billion and record high $57 billion quarterly revenue, surging beyond the bar set by stock market projections, potentially easing AI bubble fears.Investors closely watched as chipmaker Nvidia released its quarterly earnings amid the backdrop of AI bubble concerns.“Blackwell sales are off the charts, and cloud GPUs are sold out,” Nvidia chief executive Jensen Huang said in an earnings release, referring to the latest model of its state-of-the-art hardware.The report, coming after the markets closed, is seen as a check on the AI boom that began three years ago with OpenAI’s ChatGPT. That breakthrough turned Nvidia from a chipmaker mostly known for video game graphics into a key player in AI, as its special chips are now essential for powering the technology.Analysts predicted the chip giant to report over 50% growth in both net income and revenue for its fiscal third quarter. The main reason is straightforward: Microsoft, Amazon, Alphabet and Meta, which together account for more than 40% of Nvidia’s sales, are expected to boost their combined AI spending by 34% over the next year, reaching $440 billion, according to Bloomberg data.The firm’s market value has risen tenfold to $4.5 trillion, surpassing Apple, Microsoft and Alphabet.On Wednesday, the Nvidia’s stock closed at $186.52, up 5.16 points or 2.85%Nvidia has built a habit of beating analysts’ expectations and giving optimistic comments about future growth. CEO Jensen Huang has often said the company is still in the early stages of a growth path that could last another decade, despite challenges like President Donald Trump’s trade war.But in recent weeks, some investors have started to worry the AI hype may be too much, even as companies like Alphabet spend more on AI. Nvidia’s market value has dropped more than 10%, a correction coming just three weeks after it hit $5 trillion.“Skepticism is the highest now than anytime over the last few years,” Nancy Tengler, CEO of Laffer Tengler Investments told AP.Investors will also watch Huang’s comments closely, as they are often seen as a report on the health of the AI market itself.
