Nvidia's strong forecast calms AI bubble jitters, for now

Core Viewpoint - Nvidia's CEO Jensen Huang dismissed concerns about an AI bubble, highlighting the company's strong growth and demand for its chips across various sectors, including cloud computing [1][3]. Financial Performance - Nvidia reported a 62% increase in third-quarter sales, marking the first acceleration in seven quarters, with data-center sales reaching $51.2 billion, surpassing analyst expectations of $48.62 billion [6]. - The company anticipates fiscal fourth-quarter sales of $65 billion, exceeding analysts' average estimate of $61.66 billion, and expects an adjusted gross margin of 75% [5]. Market Reaction - Following the earnings report, Nvidia's shares rose by 5% in extended trading, potentially adding $220 billion in market value, while the broader market saw a decline of nearly 3% in November [4]. - The positive results also boosted shares of competitors like AMD and tech giants such as Alphabet and Microsoft [6]. Future Outlook - Nvidia has a forecast of $500 billion in bookings for its advanced chips through 2026, indicating strong future demand [3]. - The finance chief stated that the company plans to maintain gross margins in the mid-70% range during fiscal 2027 [5].