Nvidia's Earnings Lifeline: How Chipmaker's Win Pulled Broader 'Risk-On' Assets Caught In AI Crossfire - NVIDIA (NASDAQ:NVDA)

Core Viewpoint - Nvidia Corp.'s strong third-quarter earnings have countered concerns about an AI bubble, leading to a broad market rally across various asset classes [1][2]. Market Reaction - Nvidia's earnings spurred a "risk-on" sentiment, resulting in significant gains in crypto assets, with Bitcoin rising 1.97% to $92,608.46 and Ethereum increasing 0.33% to $3,035.46 [4]. - Small-cap indices like the Russell 1000 rose 0.34% to 3,620.03 points, while the Dow Jones Industrial Average gained 0.10% to 46,138.77 points, indicating a positive shift for growth stocks [5]. Company Performance - Nvidia's stock has increased 34.86% year-to-date, outperforming the Nasdaq Composite and Nasdaq 100 indices, which returned 17.03% and 17.47%, respectively [8]. - Following the earnings report, Nvidia shares closed 2.85% higher at $186.52 and surged 5.08% in after-hours trading, marking a 27.85% increase over the year [8]. Industry Context - The demand for AI chips remains robust, with major companies like Microsoft, Meta, and Amazon increasing capital expenditures, which supports Nvidia's position against claims of an AI bubble [4]. - Nvidia's CFO responded to criticisms regarding GPU depreciation, asserting that A100 GPUs from May 2020 are still at "100% utilization" due to software upgrades, countering allegations of inflated earnings [7].