As Nvidia serves up a giant cookie, Wall Street asks for milk

The leading AI chip producer, Nvidia, reported impressive earnings for the second quarter, with sales rising 122% and profits doubling. Despite this, the company’s shares slumped 7% following the announcement. Nvidia has benefited greatly from the AI hype and has seen its stock soar over the past five years. However, as the initial AI excitement fades, investors are becoming more cautious about the actual value of the technology and its ability to generate revenue. There are concerns that the AI craze may be a bubble ready to burst, but Nvidia remains confident due to the usefulness and complexity of its hardware.