Shares in artificial intelligence darling Nvidia initially popped as much as 5% Thursday after the U.S. firm beat expectations in third-quarter results, but later reversed that surge.
Wednesday after the bell, Nvidia topped forecasts for revenue, which jumped 62% to $57.01 billion year-on-year, and issued stronger-than-expected fourth-quarter sales guidance.
"There's been a lot of talk about an AI bubble," Nvidia CEO Jensen Huang told investors on an earnings call, as the firm set out its view of the industry. "From our vantage point, we see something very different."
Quilter Cheviot's Ben Barringer, who is the global head of technology research and investment strategist, told CNBC's "Europe Early Edition" that Nvidia brought relief in two-parts: it beat gross margins, which is important for semiconductor stocks, but the firm also addressed market concerns head-on in its earnings call.
"They really went through and sort of tried to disprove pretty much all of the bear cases out there. They talked about scaling laws, they talked about all the different elements of demand, not just hyperscaler capex, but the model demand that they're seeing from companies like OpenAI and Anthropic, software demand, enterprise demand, sovereign AI," Barringer said.