The AI gold rush is showing signs of financial fragility, with rising expenses and stagnant earnings from selling AI services. Nvidia’s $100 billion investment in OpenAI is reportedly downsizing, raising concerns about AI investment. Despite these doubts, Nvidia remains a leader in AI, with strong fundamentals and record-breaking revenue growth.

Nvidia’s fiscal 2026 Q3 results exceeded expectations, with total revenue hitting a record $57 billion, driven by robust demand for AI GPUs. Data center revenue surged to $51.2 billion, and profitability increased by 60%. The company continues to reward shareholders through buybacks and dividends, with strong momentum in AI demand.

CEO Jensen Huang highlighted soaring demand for Nvidia’s Blackwell chips, with cloud GPUs in high demand. The company expects this trend to continue in Q4, forecasting revenue of $65 billion. Bank of America maintains a “Buy” rating on Nvidia, citing its dominant position in AI computing and networking markets.

Despite concerns about AI spending, Wall Street’s confidence in Nvidia remains high, with a consensus “Strong Buy” rating. Price targets suggest significant upside potential, with analysts bullish on Nvidia’s long-term AI dominance story. An optimistic outlook prevails, with the belief that Nvidia is well-positioned to navigate challenges in the AI investment cycle.

Read more at Yahoo Finance: Nvidia May Not Invest $100 Billion in OpenAI After All. Is That a Bad Sign for NVDA Stock?