High Earnings

Nvidia reported third-quarter earnings that exceeded Wall Street expectations and eased concerns of an AI bubble.

Context

Nvidia, a chip designer, is the world's most valuable publicly traded company and serves as an indicator of the AI industry’s health. In recent weeks, investors grew concerned that tech companies are spending too much on AI infrastructure without clear returns, leading some major investors to sell their Nvidia stakes.

In recent days, a significant amount of trades have revolved around expectations about Nvidia’s third-quarter earnings.

Strong Quarter

On Wednesday evening, the company reported revenues of $57B for the quarter ending in October, surpassing analyst expectations of $54.9B. Sales increased 62% compared to the previous year.