All eyes were set on Nvidia's (NASDAQ: NVDA) fiscal 2025 first-quarter results (for the three months ended April 28), which were scheduled for release on May 22. And the company didn't disappoint. It handsomely crushed Wall Street's expectations and issued terrific guidance for the current quarter.

The health of the artificial intelligence (AI) market was a big reason why investors were waiting with bated breath for Nvidia's results. There have been concerns that Nvidia stock could be in a bubble, and that the company might not be able to sustain its outstanding growth thanks to increasing competition and a pullback in AI infrastructure spending.

After all, Nvidia has been the prime beneficiary of the proliferation of AI as its chips have played a central role in helping train AI models such as ChatGPT and form the backbone of the AI services offered by major tech giants. The semiconductor specialist's results cement the fact that AI is not just hype, which is why its customers are pouring billions of dollars into its hardware.

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Source Fool.com