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Nvidia exceeds expectations and reassures the markets
Nvidia’s recent quarterly results, released after the Wall Street closed, have dispelled fears of a potential slowdown in the AI sector.
The company reported revenue of 57 billion dollars, up 62% from the previous year, with profits rising to +65%. End-of-year forecasts point to 65 billion, signalling an even stronger growth.
With a 90% market share of GPUs used to train Artificial Intelligence models, Nvidia is now considered the barometer of the entire tech sector.
Fears of correction and overreaction on the markets
In recent days, the surge in the evaluation of companies linked to AI had sparked concerns about a possible correction.
The exit of Peter Thiel’s hedge fund from Nvidia, selling 100 million dollars in shares, fuelled uncertainty, triggering declines on Wall Street and a domino effect across Asian markets.
Despite a capitalisation close to 5 trillion dollars, just a few days of downturn were enough for many to speak of an “AI bubble,” generating concern for giants such as Microsoft, Google, Meta and Amazon.
High investments, revenues still-limited
Many observers have noted that the multimillion investments in AI infrastructure – from chips to data centres – are not yet justified by current revenues.
However, this does not necessarily represent a systemic risk, especially in a sector undergoing rapid expansion.
The concerns voiced by the IMF and the ECB, while understandable, risk exacerbating market volatility.
OpenAI and long-term investment logic
OpenAI, valued at around 500 billion dollars, with 20 billion in sales and 10 billion in losses in 2024, is planning colossal investments of 1.4 trillion dollars over the coming years, with contracts already signed for 1 trillion dollars.
Such an unprecedented commitment highlights confidence in the sector’s potential and the explosive demand for computational power and energy.
Data centeres: a rapidly accelerating market
Companies operating data centres—critical infrastructure for AI—are growing at nearly 20% per quarter, with estimated revenues of 50 billion and a global valuation that could reach 1 trillion dollars by 2030.
Avoiding alarmism: growth remains solid
Premature warnings can trigger panic among investors and jeopardize the stability of financial markets.
Financial institutions must assess carefully before speaking of a “bubble,” recognising that fluctuations are a structural part of markets.
Those who invest with long-term conviction do so because they see a concrete prospect for innovation and sustainable growth in the Artificial Intelligence sector.
Franco Torchia
President of the Ethics Committee
