Nvidia's recent earnings report has triggered a rally in global tech stocks, particularly in Asian markets, alleviating concerns about an AI bubble. The chipmaker's Q3 revenue reached $57 billion, surpassing analysts' expectations, with data centre sales contributing significantly. Nvidia's forecast for Q4 revenue is approximately $65 billion, signalling sustained demand for AI infrastructure.
This positive outlook has boosted investor confidence, with shares of Nvidia, Alphabet, Meta, and Amazon experiencing gains. The strong performance is seen as a bellwether for the AI ecosystem, suggesting continued growth in the sector.
However, analysts caution that future growth must maintain its pace to sustain positive sentiment, and the success of Nvidia does not guarantee similar results for all companies in the AI space. The company's earnings are being closely watched for insights into the broader AI investment landscape, as major tech firms continue to increase their spending on AI.
