Nvidia Didn’t Save the Market. What’s Next for the AI Trade?

Wall Street thought blowout earnings from Nvidia Corp. would calm investors’ nerves about a bubble forming in artificial intelligence stocks. They didn’t.

So where does the AI trade stand now? It depends who you ask.

On one side you have the skeptics. They’re concerned about soaring market valuations as investors chase growth in a small collection of stocks tied to the AI boom. They see the hundreds of billions of dollars these companies are spending to stay in the race as unsustainable, particularly as they start to take on debt in order to keep up. In addition, the circular nature ...