Weekly Briefing - Nvidia silences the AI bubble talk

Here is the week in economics, explained without the jargon.

Nvidia’s earnings quieted AI bubble worries

The chipmaker at the center of the AI boom reported revenue of $68 billion for the quarter, up 73% from a year earlier, and gave guidance for the next quarter that came in well above what analysts expected. For months, some investors had worried that spending on AI infrastructure was outrunning real demand - this report was widely read as evidence that demand is still very much there.

Retailers held up well

Home Depot beat earnings expectations and kept its full-year forecast unchanged, a reassuring sign for a company whose sales are closely tied to how confident people feel about big-ticket home spending.

Markets stayed on edge about tariffs and AI

Despite the strong earnings, major stock indexes faced pressure this week from broader worries about tariffs and the pace of AI-driven disruption to other industries. Software companies, including Salesforce, posted gains after their own earnings later in the week.

What it means for you

One company’s earnings report will not settle a debate as big as “is AI overhyped,” but a result this strong from the industry’s biggest player is a meaningful data point either way.