ASX tech stocks rip in the wake of Nvidia's beat, but AI bubble fears remain
Data centre operators such as Macquarie Technology and DigiCo are feeling vindicated, but ASX-focused fund managers warn that the ingredients for an AI bubble are still in place.
ASX-listed data centre operators have seized on Nvidia's blowout quarterly earnings as evidence of enduring demand for AI-related infrastructure, but some local fund managers are remaining cautious as bubble concerns linger.
In one of the most highly anticipated earnings releases of the year, Nvidia appeared, for a few hours at least, to dispel concerns around inflated tech valuations and an ever-swelling AI bubble.
The world’s most valuable company delivered quarterly revenue of USD57 billion ($88 billion), a surging 62% rise from a year earlier and topping average estimates of around USD55 billion.
Chief executive Jensen Huang also said Q4 revenue is expected to reach USD65 billion, “plus or minus 2%”, beating market forecasts of USD61.7 billion.
