Nvidia posted better-than-expected quarterly earnings on Wednesday in a sign that the AI trade remains strong despite fears of an AI bubble.
The chipmaking giant, widely considered a bellwether for the health of the AI market, reported $96.2 billion in quarterly revenue, crushing analysts’ expectations, with $89 billion of the total coming from data centers alone.
The results, however, reveal that AI spending remains concentrated among a handful of buyers: Hyperscalers still account for a larger share of Nvidia’s data center revenue. While revenue from AI-focused cloud startups, governments, and corporate customers grew faster than hyperscale revenue, “the dependence is still there,” Bloomberg noted.
