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

Shares have lost gains from a September AI-fueled pop, and the company’s debt load is growing.

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.

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.

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.

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: