Nvidia turns negative after Ray Dalio warns the latest market boom is a ‘big bubble with big wealth gaps’ poised for a politically explosive bust

Market Overview - The stock market experienced a significant early rally, with the S&P 500 initially gaining nearly 2% before a midday selloff occurred, reflecting mixed economic data and uncertainty regarding the Federal Reserve's next actions [1] - Nvidia's stock, which surged after reporting strong earnings, ultimately reversed to a 1% decline, mirroring the broader trend in the megacap AI sector [1] Nvidia's Performance - Nvidia reported a remarkable $57 billion in revenue for the third quarter, marking a 22% increase from the previous quarter and a 62% increase year-over-year [3] - The company's data center revenue reached $51.2 billion, up 25% sequentially and 66% year-over-year, driven by high demand for its new Blackwell GPUs [3] - Nvidia provided guidance for the next quarter, projecting revenue of $65 billion, indicating sustained growth in AI spending [3] Market Sentiment and Concerns - Ray Dalio, founder of Bridgewater Associates, expressed concerns about a potential market bubble, suggesting that while the current situation is not identical to historical bubbles, indicators show the U.S. market is approaching a critical point [2][5] - Dalio emphasized that bubbles typically burst not solely due to high valuations but when investors are forced to sell assets to meet liquidity needs, which can trigger a cascade effect in the market [5] CEO's Perspective - Nvidia's CEO Jensen Huang dismissed bubble concerns during the earnings call, asserting that the demand for AI computing is driven by multiple concurrent trends rather than a single factor [4]