Danielle KayeBusiness reporter
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Chief executive Jensen Huang said sales for some of Nvidia’s AI components were “off the charts”
Chip giant Nvidia has reported stronger-than-expected revenues, easing investor concerns about heavy artificial intelligence (AI) spending that have unsettled markets.
The company said revenue for the three months to October jumped 62% to $57bn, driven by demand for its chips used in AI data centres. Sales from that division rose 66% to more than $51bn.
Fourth-quarter sales forecasts in the range of $65bn also topped estimates, sending shares in Nvidia about 4% higher in after-hours trading.
“There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” said chief executive Jensen Huang.
In a statement, Mr Huang said sales of its AI Blackwell systems were “off the charts” and that “cloud GPUs [graphics processing units] are sold out”.
“We excel at every phase of AI.”
Nvidia, the world’s most valuable company, makes chips that are crucial for AI data centres and is seen as a bellwether for the AI boom.
Its latest results were under even more attention than usual on Wall Street amid mounting concern that AI stocks are overvalued – fears that may persist despite the blockbuster results.
Those fears had fuelled four consecutive daily drops in the S&P 500 index leading up to Wednesday, as questions swirl about returns on AI investments. The benchmark index has fallen nearly 3% so far in November.
Some analysts have compared the surge in AI stocks to the dotcom boom of the late 1990s. This saw the values of early internet companies soar amid a wave of optimism over the then-new technology before the bubble burst in early 2000.
This collapse in share prices led to some companies going bust, and also hit the value of people’s savings including their pension funds.
The bar was high heading into Nvidia’s results.
Adam Turnquist, chief technical strategist for LPL Financial, said th
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