Nvidia's strong forecast calms AI bubble jitters - for now
Nvidia’s latest forecast might just be the confident mic-drop the AI market needed, shaking off jitters about an overheated bubble—at least for now. Investors temporarily exhale as the chipmaker’s booming datacenter revenues and a bullish outlook slay fears that the AI spending spree was about to deflate. However, the market’s newfound calm feels more like a pause than a full stop, with skeptics warning that infrastructural bottlenecks and sustainability questions linger.
The semiconductor giant reported a quarterly datacenter revenue of $51.2 billion, surpassing analysts’ $48.62 billion expectations, and forecasted $65 billion for the next quarter—well above estimates. Nvidia’s CEO Jensen Huang emphasized that the AI surge is far from a bubble, backed by $500 billion in chip bookings through 2026. Despite this optimism, some analysts caution that the pace of demand growth may hit limits due to power, land, and supply chain constraints. Still, Nvidia’s performance and outlook reinforced confidence across global markets, uplifting tech stocks and defusing immediate concerns about AI investment overheating.
