Analysts upgraded their outlooks for Nvidia stock on Thursday after a big earnings report from the AI chip maker.

Jay Goldberg, the only sell-side analyst with a bearish rating on Nvidia's stock, saw "a few blemishes" despite Nvidia's "good quarter and solid guidance." "For starters, the company sounded fairly cautious about gross margins next year,

Markets are exploding on Nvidia (NASDAQ: NVDA) earnings. Just last night, Nvidia posted EPS of $1.30, which beat estimates by four cents. Revenue of $57 billion, up 62.5% year over year, beat by $1.91 billion.

Nvidia’s results on Wednesday appeared to assuage some of those concerns. Revenues grew 62 per cent year on year to $57bn in the three months to the end of October, beating consensus estimates of $55bn compiled by Visible Alpha.

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

Analysts say Nvidia's blockbuster earnings show the AI boom is still accelerating and that fears of an AI bubble are overstated.

Wall Street stocks slid on Thursday in a sharp reversal from an early rally, as technology gains faded after a boost from Nvidia's earnings and U.S. jobs data muddied the labor market outlook.