By Dylan Butts
Publication Date: 2025-11-20 08:50:00
Nvidia reported strong earnings and forecasts Wednesday, in what analysts saw as a clear signal for continued spending on AI infrastructure. Less clear, however, is whether the results can dispel fears of an AI bubble in markets. Fears have grown in recent months that massive investment in AI by major tech companies could outpace realistic returns, leading some industry insiders and analysts to predict an AI bubble. While Nvidia ‘s earnings are widely viewed as an important gauge of the AI industry’s health, some analysts warn that its performance doesn’t tell the whole story. “I think a lot of people will be relieved, but they really didn’t need to worry about Nvidia heading [into earnings] anyway,” Gil Luria, head of technology research at D.A. Davidson, told CNBC on Thursday. Concern about [an AI bubble] isn’t an Nvidia problem. The concern is about companies raising a lot of debt to build data centers. Head of technology research at D.A. Davidson Gil Luria The analyst noted that Nvidia’s customers, including Microsoft , Amazon , Google and Meta , had already telegraphed plans to accelerate spending on AI chips, and that was reflected in Nvidia’s results. This strong demand has also been a boon for Nvidia-related chip stocks, with its key suppliers in Asia trading higher on Thursday. However, Luria said, “concern about [an AI bubble] isn’t an Nvidia problem. The concern is about companies raising a lot of debt to build data centers.” Nvidia’s AI chips, also known as…