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Nvidia’s Blowout Quarter Fails to Quell AI Bubble Jitters

The blockbuster results left unresolved doubts over the financing durability of the AI infrastructure boom.

Overview

  • Nvidia reported about $57 billion in quarterly revenue, guided to roughly $65 billion next quarter, and said multi‑year supply is effectively spoken for with a 63% sequential jump in commitments.
  • An early rally in Nvidia and AI stocks faded into a broad sell‑off, with Nvidia down nearly 3% on Thursday and weakness spreading across major indexes and global chip shares.
  • Executives rejected bubble claims, while several analysts raised forecasts, yet others warned that valuations look stretched and that the latest report only postpones tougher questions.
  • High‑profile investors moved to hedge or exit AI exposure, including Michael Burry’s large put positions, Peter Thiel’s stake sale, and SoftBank’s disposal of its Nvidia holding.
  • Risks highlighted across coverage include rapid hardware depreciation and obsolescence, circular funding and credit exposure tied to AI capex, and geopolitical pressure as China orders falter amid rising local competition.