Nvidia’s strong forecast calms AI bubble jitters, for now

Nvidia reported strong third-quarter earnings and an optimistic fourth-quarter forecast, with accelerating growth that temporarily eased investor fears about an AI bubble. CEO Jensen Huang dismissed bubble concerns, citing Nvidia's widespread market presence and $500 billion in chip bookings through 2026, boosting shares and the broader market. However, some analysts remain wary about the sustainability of AI infrastructure spending, potential "circular financing" (Nvidia investing in its customers and renting back chips), and increasing sales concentration among a few major clients. Nvidia is also navigating US export restrictions by expanding into the Middle East, while physical constraints like power and land access are identified as potential long-term impediments to growth.