Nvidia Volatility Amid Strong Numbers and AI Spending Concerns

about 2 months ago

Lisa Mateo

"Okay, we're starting with Nvidia, right? Uh NVDA. These have really been on this roller coaster ride. Okay, so they fell more than 3% yesterday after initially climbing more than 5% after that. You know, their revenue forecast was stronger than expected before the open. Shares are actually starting to battle back. They're now up nearly 1%. But those swings having an impact on the markets, too, which has been on their own roller coaster ride yesterday, even before the bell. We've seen kind of a shift, too. Now shares are uh uh markets are higher. Um, Nvidia said Wednesday sales are going to be about 65 billion in the January quarter, roughly 3 billion more than analysts predicted, but there was always that fear from investors that spending on its AI chips is not sustainable. Talk of an AI bubble, so that's why it's kind of been all over the map."

Nvidia's stock has experienced significant volatility amid a strong revenue forecast and impressive sales guidance for the January quarter, but there are lingering concerns about whether spending on AI chips is sustainable, given the chatter around an AI bubble.

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