Nvidia’s third-quarter monetary outcomes on Wednesday topped analyst expectations, an indication that demand for its synthetic intelligence chips stays strong amid investor considerations about an AI bubble. 

The chipmaker reported report income of $57 billion for the third quarter, up 22% from the earlier quarter and up 62% from a yr in the past. Earnings per share had been $1.30. The Santa Clara, Calif., firm had been anticipated to earn $1.26 per share on income of $54.9 billion for the quarter, in line with analysts polled by FactSet.

“Blackwell gross sales are off the charts, and cloud GPUs are offered out,” Nvidia CEO Jensen Huang mentioned in a press release on Wednesday.

In October, the chipmaker turned the primary publicly listed firm value $5 trillion, with its shares buoyed by Wall Avenue expectations of surging demand. 

However in latest weeks, some buyers have expressed warning in regards to the hype surrounding AI and whether or not the hovering market worth of corporations linked to the expertise is warranted. Regardless of the promise of AI, most corporations which can be implementing AI have but to see a measurable improve in productiveness or income, in line with Wall Avenue analysts. 

The corporate’s outcomes had been pushed by demand for Nvidia’s Blackwell graphics processing unit chips, which might assist persuade buyers “that this AI spending development is an unparalleled second in trendy tech historical past and isn’t a bubble second,” Wedbush Securities analyst Dan Ives mentioned. 

The development of knowledge facilities throughout the U.S. has boosted demand for Nvidia’s chips. Information heart funding, which incorporates spending on AI analysis and growth, has turn out to be the most important contributor to U.S. development this yr, in line with S&P World. 

The S&P 500’s 15% achieve this yr has been pushed largely by huge tech corporations with AI investments. The mixed market capitalization of the so-called “Magnificent 7” — Google-owner Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — accounts for 37% of the index’s whole worth, in accordance to Morningstar.