GLOBAL stock markets were boosted after NVIDIA — the world’s most valuable company — reassured investors that the artificial intelligence bubble is not about to burst.
The chip maker said revenue for the three months to October jumped 62 per cent to $57billion (£43.6billion).
This was driven by demand for its chips, which are used in most artificial intelligence data centres.
Nvidia chief executive Jensen Huang told analysts: “There has been a lot of talk about an AI bubble.
“From our vantage point we see something very different.”
The company’s computer chips are powering much of the AI surge and are a key component in chatbots such as ChatGPT.
Sales from that division rose 66 per cent to more than £39billion.
Fourth-quarter sales forecasts in the range of £50billion also topped estimates, pushing shares in Nvidia 4 per cent higher in after-hours’ trading.
The results steadied the tech sector following a recent sell-off, after investors became spooked by valuations and capital expenditure on chips and data centres.
As a result, the FTSE 100 saw a 0.7 per cent gain led by tech stocks, banks and natural resources’ firms.
The US, Asia and European stock markets also rose yesterday as tech companies and Nvidia’s competitors were also boosted by the news.
AHEAD OF THE GAMES
SHARES in Games Workshop soared by 11 per cent yesterday after the company said it expects sales and profits to jump this year.
The Warhammer maker, which is based in Nottingham, told investors it was estimating revenues for the six months to the end of November of at least £310million.
That is a 15 per cent jump from the £269million generated in the same period last year.
The group’s pre-tax profit is forecast to be about £135million for the half-year, up from nearly £127million last year.
SPOIL SPORTS
JD Sports Fashion has warned that its annual profits will be lower than forecast because rising unemployment is impacting shopper confidence.
The group saw like-for-like sales fall 3.3% in its third quarter to November 1 — an improvement on the previous three months.
It expects pre-tax profits “within the lower end of current market expectations”, which are currently £853million to £888million.
DOC SMARTIN’
DR MARTENS will raise its prices in the US from January to offset costs of higher tariffs.
The boot maker produces the majority of its footwear in Vietnam, which has been hit by US President Donald Trump’s trade war.
The company previously pledged to keep prices on hold in 2025 despite higher tariffs.
It said it remains on track with full-year forecasts — for between £53million and £60million underlying pre-tax profits.