Nvidia sets out to prove AI is not overhyped [Video]

All eyes will be on Nvidia next week as it gets ready to unveil results amid growing fears that the artificial intelligence (AI) bubble may have burst, writes Leah Montebello.

The US chipmaker, which designs and supplies graphics processing units that are key to building AI systems, has enjoyed a meteoric growth over the past year.

But analysts are also scratching their heads at how long this momentum can last after a sharp sell-off this month.

More than $1trillion (€900m) was wiped off the value of the ‘Magnificent Seven‘ tech giants – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – on August 5 alone.

At the time, hedge fund Elliot Management said Nvidia was in a “bubble” and artificial intelligence was “overhyped”, adding that it was sceptical about whether tech firms would keep ploughing cash into the chipmaker’s graphics processing units in such high volume.

The episode left investors …