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‘We excel at every phase of AI’: Nvidia CEO quells Wall Street fears of AI bubble amid market selloff

2 days ago
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Global share markets rose after Nvidia posted third-quarter earnings that beat Wall Street estimates, assuaging for now concerns about whether the high-flying valuations of AI firms had peaked.On Wednesday, all eyes were on Nvidia, the bellwether for the AI industry and the most valuable publicly traded company in the world, with analysts and investors hoping the chipmaker’s third-quarter earnings would dampen fears that a bubble was forming in the sector.Jensen Huang, founder and CEO of Nvidia, opened the earnings call with an attempt to dispel those concerns, saying that there was a major transformation happening in AI, and Nvidia was foundational to that transformation.“There’s been a lot of talk about an AI bubble,” said Huang.“From our vantage point, we see something very different.

As a reminder, Nvidia is unlike any other accelerator.We excel at every phase of AI from pre-training to post-training to inference.”The company surpassed Wall Street’s expectations in nearly every regard, as it has for multiple quarters in a row, a sign that the financially enormous AI boom is not slowing down.Nvidia reported $1.30 in diluted earnings per share on $57.

01bn in total revenues, beating investor expectations of $1.26 in earnings per share on $54.9bn in revenue.Sales are up 62% year-over-year.The company reported $51.

2bn in revenue from datacenter sales, beating expectations of $49bn.The company is also projecting fourth- quarter revenue of around $65bn; analysts had predicted the company would issue a guidance of $61bn.On the call with investors, Huang said that there were three huge platform shifts: a transition from general purpose computing to accelerated computing; a transition to generative AI and a transition to agentic and physical AI, eg robots or autonomous vehicles.“As you consider infrastructure investments, consider these three fundamental dynamics,” Huang said.“Each will contribute to infrastructural wealth.

Nvidia … enables all three transitions and does so for any form or modality of AI.”Demand for the company’s chips continues to grow, he said.“AI is going everywhere, doing everything, all at once.”Sign up to TechScapeA weekly dive in to how technology is shaping our livesafter newsletter promotionThomas Monteiro, senior analyst at Investing.com, said: “This answers a lot of questions about the state of the AI revolution, and the verdict is simple: it is nowhere near its peak.

As investors worry that mounting CapEx will force companies to slow their AI adoption cycles, Nvidia continues to prove that datacenter scaling is not optional, but rather the central need for every tech business in the world.”Analysts and experts said that although they were largely confident Nvidia would beat Wall Street expectations, they were anxiously awaiting the earnings call for more news on the status of industry demand for the firm’s AI chips.“There is still no doubt that Nvidia is far and away the leader for AI-focused chips,” David Meier, senior analyst at investment website the Motley Fool, wrote.“So, I expect revenue, margins, and cashflows to be pretty close to analysts’ estimates.But the valuable information is more likely to come from the commentary about where management sees its markets headed, whether it’s in the AI market or [a] new market the company is currently pursuing.

”Shares in Nvidia have been down 7.9% in November after major investors dumped their stocks in the firm.Peter Thiel’s hedge fund, Thiel Macro, sold off its entire stake in the chipmaker in the last quarter.His holdings would have been valued at about $100m, according to a Reuters report.Softbank has also sold off its $5.

8bn holdings in the company, further boosting fears of an AI bubble.Shares in Nvidia – which last month became the world’s first $5tn company – rose more than 5% in post-market trade, while S+P 500 and Nasdaq futures also soared.Asian markets also rallied on Thursday, following the news.However, SPI Asset Management’s Stephen Innes said: “Nvidia’s latest forecast has, for now, dulled the sharpest edges of the AI-bubble anxiety that had gripped global markets … But make no mistake: this is still a market balancing on a wire stretched between AI euphoria and debt-filled reality.”“I do not believe that Nvidia’s growth is sustainable long-term,” said Forrester’s senior analyst Alvin Nguyen.

“AI demand is unprecedented, but if there is a market correction due to supply meeting demand or a slowdown in the pace of innovation/businesses getting used to the pace, I expect that the continued growth in Nvidia share value will slow down.”
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Overseas-trained doctors leaving the UK in record numbers

Record numbers of overseas-trained doctors are quitting the UK, leaving the NHS at risk of huge gaps in its workforce, with hostility towards migrants blamed for the exodus.In all, 4,880 doctors who qualified in another country left the UK during 2024 – a rise of 26% on the 3,869 who did so the year before – figures from the General Medical Council reveal.NHS leaders, senior doctors and the GMC warned that the increased denigration of and abuse directed at migrants in the UK was a significant reason for the rise in foreign medics leaving.“It’s really worrying that so many highly skilled and highly valued international doctors the NHS just can’t afford to lose are leaving in their droves,” said Daniel Elkeles, the chief executive of the hospitals group NHS Providers.“We wouldn’t have an NHS if we hadn’t for many years recruited talented and valued people from all around the world

1 day ago
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Prozac ‘no better than placebo’ for treating children with depression, experts say

Clinical guidelines should no longer recommend Prozac for children, according to experts, after research showed it had no clinical benefit for treating depression in children and adolescents.Globally one in seven 10- to 19-year-olds have a mental health condition, according to the World Health Organization. In the UK, about a quarter of older teenagers and up to a fifth of younger children have anxiety, depression or other mental health problems.In the UK, National Institute for Health and Care Excellence (Nice) guidance says under-18s with moderate to severe depression can be prescribed antidepressants alongside therapy.But a new review of trial data by academics in Austria and the UK concluded that fluoxetine, sold under the brand name of Prozac among others, is clinically no better than placebo drugs in treating depression in children, and should therefore no longer be prescribed to them

1 day ago
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Councils in north of England and Midlands to get more funding in shake-up

Deprived towns and cities in the Midlands and the north of England are the big winners in a shake-up of local authority funding that will redirect cash from affluent rural areas to urban councils hit hardest by austerity.Ministers said the changes put in place a fairer system that recognised the extra needs and weaker council tax-raising powers of councils in so-called “left behind” areas. It guarantees them real-terms funding increases for the next three years.“People living in the places that suffered most from austerity will finally see their areas turned around,” the local government minister, Alison McGovern, said in a parliamentary statement.The changes, which will be introduced from April, before critical local elections in May, could see funding boosts for Reform-led councils in the north with high levels of deprivation, such as Durham and Lancashire, as well as in Kent, Reform’s flagship council

1 day ago
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Keeping youths in care out of trouble | Letter

Diverting young people in care from the youth justice system and the associated criminalisation may help their future careers (Children in care who lash out may no longer face automatic arrest under UK review, 17 November). However, international research studies have shown that reducing the chances of young people being involved in crime to begin with are more effective.These include: stable family foster care placements; doing well at school; extending foster care placements beyond 18 years of age; having positive birth family, extended family, partner and social relationships; being settled in accommodation on leaving care; and being supported by leaving-care teams providing personal, careers, housing and financial support.For too many young people these opportunities are lacking or inconsistent, even in the face of substantial evidence detailing their unnecessary involvement in the criminal justice system, very poor outcomes and the associated costs to young people and society – see In Care, Out of Trouble, the report of Lord Laming’s review, published by the Prison Reform Trust in 2016.Prof Mike SteinUniversity of York Have an opinion on anything you’ve read in the Guardian today? Please email us your letter and it will be considered for publication in our letters section

1 day ago
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How prohibition-based policies caused a cannabis problem | Letters

Your article correctly raised concerns about the harms of higher-strength cannabis on people vulnerable to psychosis (‘I’d run down the road thinking I was God’: a day at the cannabis psychosis clinic, 16 November). However, it didn’t explain how previous prohibition‑based policies designed to reduce cannabis use have driven up the strength of street cannabis, the source of most cannabis for people with psychosis, thus making the problem worse.Furthermore, growing data from the Drug Science T21 project and other prescription databases globally shows that medical cannabis can alleviate a range of psychiatric and neurological disorders, without inducing psychosis. Any suggestion that rates of cannabis-related psychosis could be reduced by limiting medical cannabis access is flawed and is likely to harm patients currently benefiting from it.Prof D Nutt and Prof Ilana CromeDrug Science Have an opinion on anything you’ve read in the Guardian today? Please email us your letter and it will be considered for publication in our letters section

1 day ago
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Musical comfort at the end of your life | Brief letters

Readers who were moved by the article on Kate Munger’s Threshold Choirs (‘It was the last time Mum smiled at me’: the choirs singing to the dying in three-part harmony, 17 November) may like to know that similarly, in the UK, Companion Voices sings for people at the end of life, creating a gentle supportive soundscape. Founded by Judith Silver 12 years ago, more than a dozen groups now offer this voluntary service across England, with more planned.Kay AshtonWallingford, Oxfordshire John Crace’s analysis of Keir Starmer’s hapless, hopeless Labour government (‘I thought the grownups were back in charge!’: John Crace on how Labour shattered his expectations, 19 November) was, as usual, witty and shrewd – apart from his observation that the government’s right hand doesn’t know what the left hand is doing. Actually, it’s worse than that: the right hand doesn’t even know what the right hand is doing.Prof Chris WalshHawarden, Flintshire Zoe Williams’ reflection on the naming of storms (I keep trying to name storms

1 day ago
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Seth Meyers on Epstein files: ‘It’s obvious why Trump fought so hard to stop this bill from passing’

1 day ago
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My cultural awakening: I moved across the world after watching a Billy Connolly documentary

1 day ago
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Jimmy Kimmel on Epstein files congressional vote: ‘Make no mistake – this isn’t over’

2 days ago
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British Museum ends ‘deeply troubling’ sponsorship from Japanese tobacco firm

3 days ago
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Why don’t Conservatives get credit for culture funding? | Letter

3 days ago
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Jon Stewart on Trump’s Epstein files flip-flop: ‘This dude is flailing’

4 days ago