Leading up to Nvidia’s recent earnings call, concerns mounted that the company would confirm fears that the AI bubble would soon burst. Too many companies are prodigiously spending to build the next data center to create the next foundation model. Profitability is well over the time horizon, and their annular funding arrangements are unsustainable. Nvidia not only beat earnings estimates, but it also raised its outlook and delivered a forceful vision of its position in the AI ecosystem and the future that AI will enable. Unfortunately, none of that negates the above concerns.
