Nvidia’s AI-Driven Growth Faces Market Skepticism Despite Stellar Earnings
Nvidia's third-quarter revenue surged to $57 billion, eclipsing Wall Street's $55.2 billion forecast, as its data center segment—fueled by AI chip demand—delivered $51.2 billion. CEO Jensen Huang dismissed bubble concerns, projecting $65 billion in Q4 revenue. Yet shares fell 3.15%, reflecting broader unease about AI sector valuations.
The disconnect between fundamentals and market reaction highlights Wall Street's dilemma: how to price exponential growth in an untested market. Nvidia's gaming division underperformed, but this was overshadowed by data center dominance—a double-edged sword that ties its fate to AI adoption cycles.