Nvidia's outstanding earnings signal that the AI revolution is truly just beginning. With an impressive $46.7 billion in revenue — well above expectations — Nvidia has demonstrated a remarkable 56% growth despite facing trade restrictions. This is not just a one-off success; major tech companies are collectively investing over $325 billion in AI this year, and Nvidia's forecast for even greater revenue next quarter underscores the solid fundamentals of the company.
The AI bubble is real and Nvidia's results confirm that the hype is fading. Even with record revenue, the company's growth is slowing dramatically from previous triple-digit increases, while data center sales missed expectations. When a 56% revenue jump isn't enough to satisfy investors, it shows that valuations have become completely disconnected from reality. The MIT study should be a wake-up call.
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