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Nvidia surprised markets by posting fiscal third-quarter revenue of $57.01 billion, beating Wall Street estimates by nearly $2 billion.
At the same time, Bitcoin bounced back above $91,000 after briefly dipping below $89,000, with analysts attributing much of the cryptocurrency market’s decline to growing concerns of a bubble. artificial intelligence.
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Nvidia smashes Wall Street targets amid volatility
The chipmaker reported earnings of $1.30 per share and $57.01 billion in revenue for its fiscal third quarter, beating estimates of $1.26 per share and $55.2 billion in revenue. The contribution of the data center business, which enables artificial intelligence applications, reached $51.2 billion, showing a sharp increase over previous periods.
CEO Jensen Huang noted continued strong demand Blackwell chip architecture and cloud GPU For the company, it was announced that the products are still sold. Nvidia’s forward guidance was also strong, with revenue expected for the fiscal fourth quarter of $65 billion, beating analysts’ expectations of $62 billion.
CFO Colette Kress pointed to another element that contributed to the company’s results: CUDA-based accelerators extend the life of hardware, increasing customer value and strengthening Nvidia’s competitive advantage in AI infrastructure. Although the gaming console achieved revenue of $4.3 billion – which was slightly below expectations – it still delivered strong returns.
Nvidia’s market value recently surpassed $5 trillion, cementing its position as the world’s most valuable company. The stock is up 37% since the beginning of the year and 25% in the last 12 months. The stock rose 5% after the earnings report, and chip companies like AMD and Micron rode the wave artificial intelligence.
Bitcoin rebounds as AI investment sentiment returns
Bitcoin recovered on Thursday morning in Asia, jumping above $91,000 after testing lows below $89,000. The rapid rebound suggests that some investors see current prices as income opportunities despite the uncertainty.
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Major investors have recently shown caution towards AI stocks. Peter Thiel sold a $100 million stake in Nvidia. SoftBank sold about $5.8 billion worth of stock. These moves have sparked a debate about whether AI-led demonstrations can continue.
Regulatory bodies have also highlighted the risks. The Bank of England has warned of systemic threats from the widespread use of artificial intelligence in finance. The International Monetary Fund has noted the risks of bubbles in its assessments of global stability.
A Bank of America study found that 45% of fund managers see the AI ​​bubble as the biggest threat to the market. Google CEO Sundar Pichai and JPMorgan’s Daniel Pinto warned of “irrationality.” The CEO of Klarna expressed concern about the huge investments in data centers stimulated by the demands of artificial intelligence.
However, Nvidia’s third-quarter results revived sentiment to invest in AI. Nvidia defended its business model during the earnings call, although the data center’s accounting methods were called into question. The strong results prove that demand for AI remains strong despite the uncertainty. Bitcoin prices also appear to have benefited from renewed optimism.
The risk correlation between cryptocurrencies and stocks has deepened
Recent market turmoil has shown a growing correlation between cryptocurrencies and traditional risk assets. Bitcoin has seen a decline similar to declines in major stock indices such as the S&P 500, Nikkei 225, Hang Seng and Stoxx Europe 600. Cryptocurrency stocks are now more associated with the global risk environment.
Gold, usually considered a haven, has also fallen amid uncertainty. Rising US interest rates and diminishing hopes for an imminent rate hike from the Federal Reserve have put pressure on gold and cryptocurrencies. The lost global market for digital currencies Over $1 trillion in value In the last six weeks, losing a quarter of its value since October.
Technical opinion on Bitcoin remains divided. Some analysts interpret the current trade as repackaging, with long-term investors buying at low prices. While others see buying fatigue as indicating a potential deeper correction to come.
Nvidia’s strong results provide some reassurance to investors amid fears of a bubble. However, it remains uncertain whether this will rebuild broad market confidence or be considered an outlier as investors try to understand the complex signals around technology valuations and the economic outlook.
