Nvidia shares rise as booming demand for chips, bullish forecast calm worries of AI bubble

Nvidia reported strong third-quarter earnings, surpassing Wall Street expectations with $57 billion in revenue, a 62% increase from the previous year. Analysts had anticipated revenue of $54.92 billion. The company's performance is attributed to its leading role in the AI sector.

Elon Musk and Nvidia have announced a partnership with a Saudi state-backed firm to establish a large-scale AI data center. This development coincides with Crown Prince Mohammed bin Salman's visit to Washington, where the U.S. government appears to have facilitated Saudi Arabia's acquisition of American semiconductors. The collaboration aims to enhance AI capabilities and infrastructure in the region.

Microsoft announced a partnership with artificial intelligence company Anthropic and chipmaker Nvidia as part of a cloud infrastructure deal. This collaboration signifies a strategic shift for Microsoft, moving away from its long-standing relationship with OpenAI. The deal aims to enhance Microsoft's capabilities in AI and cloud services, positioning the company to better compete in the rapidly evolving tech landscape.

Social media platform X, music streaming service Spotify, and AI chatbot ChatGPT experienced significant outages affecting thousands of users. The disruptions were reported across various regions, leading to frustration among users who rely on these services for communication, entertainment, and information. The exact cause of the outages has not been disclosed, but they have raised concerns about the reliability of these popular platforms.

The S&P 500 index declined by 0.9%, moving further away from its recent all-time high reached last month. This drop was influenced by Nvidia and other leading companies that had gained prominence due to the excitement surrounding artificial intelligence technology. The continued downturn in these stocks reflects a broader trend affecting the US stock market, raising concerns among investors about the sustainability of recent gains.