Nvidia reported quarterly results that handily topped Wall Street expectations, sending the stock sharply higher in after-hours trading.

Firms such as Blue Owl Capital have raised trillions in investing firepower. The artificial-intelligence build-out is a perfect match, though warning signs are flashing.

With the Dow closing down nearly 500 points Tuesday and the S&P logging its longest slide since August, experts are pointing to concerns over an AI bubble. NBC’s Brian Cheung joins TODAY to break it all down.

Wall Street is poised to open with more losses Tuesday as artificial-intelligence -related shares continued to drag markets lower. Futures for the S&P 500 fell 0.6%, while futures for the Dow Jones Industrial Average lost 0.

Analysts see demand for high-grade AI hardware from Nvidia increasing in the coming quarters, staying upbeat even as investors fret over the AI trade.

In the deal announced Tuesday, Nvidia and Microsoft will invest up to $10 billion and as much as $5 billion, respectively, in AI developer Anthropic ( ANTH.PVT ). Anthropic will buy $30 billion of compute capacity from Microsoft Azure, and Anthropic and Nvidia will collaborate on design and engineering, the companies said.

When the AI boom began at the end of 2022 with the release by OpenAI of ChatGPT, it was chiefly financed through the massive cash flows of the so-called “hyperscalers” such as Google, Microsoft, Meta and Amazon, together with the chip-making firm Nvidia.

That hints at substantial gains in 2026 and investors can lean into that possibility by buying shares of Meta Platforms ( META 0.07%) and Alphabet ( GOOGL 0.78%) ( GOOG 0.77%). Wall Street is generally bullish on both stocks:

The U.S. stock market is slumping as superstars swept up in the mania around artificial-intelligence technology keep weakening. The S&P 500 fell 1.5% Thursday.

Wall Street will get a sense of where the billions of dollars being spent on artificial intelligence are going when Nvidia Corp. reports its earnings after the bell on Wednesday. How the sinking