Nvidia’s Earnings Lifeline: How Chipmaker’s Win Pulled Broader ‘Risk-On’ Assets Caught In AI Crossfire
Nvidia Corp.‘s (NASDAQ:NVDA) blockbuster third-quarter earnings on Nov. 19 delivered a rebuke to the mounting chorus of AI bubble warnings, igniting a swift “risk-on” rally that rippled across disparate asset classes.
Check out NVDA’s stock price here.
NVDA Earnings Defy AI Bubble Chorus
This broad market reprieve defied dire predictions from a cadre of experts who have likened the AI frenzy to the dot-com debacle. OpenAI CEO Sam Altman warned in August that investors are “overexcited,” echoing Bridgewater’s founder Ray Dalio, who sees parallels to 1990s excesses.
Legendary investor Mark Mobius forecasted a 40% stock plunge in November, citing frothy valuations and unchecked spending, while Apollo’s Torsten Slok deemed today’s AI hype “bigger than the internet bubble.”
Even JPMorgan’s Jamie Dimon and the IMF flagged overinvestment risks, with 95% of AI pilots failing ROI per recent analyses.
Nvidia’s blowout, however, underscored sustained hyperscaler demand—Microsoft Corp. (NASDAQ:MSFT), Meta Platforms Inc. (NASDAQ:META), and Amazon.com Inc.
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