Bubble fears ease but investors still waiting for AI to live up to its promise

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By MICHAEL LIEDTKE

Fears about the artificial intelligence boom turning into an overblown bubble have diminished for now, thanks to a stellar earnings report from Nvidia that illustrated why its indispensable chips transformed it into the world’s most valuable company.

But that doesn’t mean the specter of an AI bubble won’t return in the months and years ahead as Big Tech gears up to spend trillions of dollars more on a technology the industry’s leaders believe will determine the winners and losers during the next wave of innovation.

For now, at least, Nvidia has eased worries that the AI craze propelling the stock market and much of the economy for the past year is on the verge of a massive collapse.

If anything, Nvidia’s quarterly repor