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Nvidia’s record quarter calms AI bubble fears
Nvidia’s blockbuster third-quarter results rattled through both technology and cryptocurrency markets Wednesday, easing concerns about an overheated AI sector and prompting a rebound in risk assets. The chipmaker posted record revenue and profits that exceeded analyst expectations, signaling that demand for AI infrastructure remains robust.
Quarterly results and forward guidance
For the quarter ended Oct. 26, Nvidia reported revenue of $57 billion, up about 62% year-over-year and above Wall Street forecasts. Net income surged as well, with the company reporting a profit of $31.9 billion, roughly a 65% increase versus the prior year. Management also raised its outlook for Q4, guiding to approximately $65 billion in revenue — a clear sign the AI spending cycle has momentum.
Market reaction: tech shares and crypto climb
Following the earnings release, Nvidia shares rose more than 5% in after-hours trading, reversing some of the recent pressure that had weighed on AI-heavy tech stocks. The stronger-than-expected results helped lift a range of technology names and sent positive ripples through crypto markets, where prices had recently fallen amid broader risk-off flows.
Crypto equities and exchanges
Cryptocurrency-related equities saw gains after the bell. Major players tied to digital-asset infrastructure and trading experienced modest recoveries. Coinbase and other crypto-focused companies posted upticks in after-hours trading, while Bullish (BLSH) also edged higher despite earlier declines. The earnings beat provided a catalyst for investors to re-enter positions in both crypto stocks and wider technology names.
Bitcoin and Ether respond to Nvidia optimism
Spot crypto prices reacted quickly to the news. Bitcoin (BTC) had slid more than 10% over the prior week amid the sell-off but found support following Nvidia’s update. BTC dipped to a 24-hour low near $88,540 before recovering to roughly $91,500 around the time of the Q3 report. Ether (ETH) mirrored that pattern — falling below $2,900 for the first time since mid-July and then climbing back above $3,000 after the market rebound.
What this means for investors
Investors interpreting Nvidia’s results see validation of AI-driven capital expenditure, which supports a narrative of continued growth for semiconductor makers and cloud-service providers. That, in turn, can indirectly support crypto markets by improving risk appetite and encouraging flows into technology and digital-asset investments. However, volatility remains elevated, and market watchers caution that short-term moves can be sharp as traders reassess earnings, macro data, and regulatory developments in crypto and AI.
In summary, Nvidia’s blowout quarter helped soothe immediate fears of an AI bubble, lifted major tech names and provided a timely boost to crypto prices. Traders and institutional investors will continue to monitor subsequent earnings from other AI-related firms as well as macro signals to gauge whether the rally can be sustained.
Source: cointelegraph
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