Nvidia defies ‘AI bubble’ fears with strong chip demand

US tech giant Nvidia surpassed Wall Street expectations by increasing sales of its core AI chips faster than forecasted, signaling ongoing robust investments in artificial intelligence technologies. CEO Jensen Huang dismissed market concerns about an AI spending bubble, emphasizing solid demand despite challenges related to capital and energy availability for AI data centres.

Source Financial Times

Nvidia reported a 62% year-on-year revenue increase to $57 billion for the quarter ending in October, beating consensus estimates of $55 billion. Its revenue guidance of $65 billion for the current quarter exceeded Wall Street’s forecast by $3 billion, prompting a rise in its share price and boosting Asian market openings.

These results indicate that despite volatility in the tech stock market, Nvidia remains a key driver of the global AI investment boom, which could continue to fuel technological breakthroughs in the coming quarters.