The stock selloff came after Nvidia reported a 62% increase in sales of AI data center chips and raised its guidance for the current quarter. In recent sessions, investors have punished big tech, worried that some companies are spending too much on data centers, chips and other AI infrastructure with little hope of recouping their investments soon.

Nvidia's Q3 earnings just revived investors' confidence in the AI trade.

Wall Street had been anticipating $54.9 billion, according to the consensus on FactSet, meaning the company turned in a sizable beat.

The rise of artificial intelligence was a “once-in-a-lifetime opportunity,” she said, and the company had to put AI at the center of its entire product line. Three years later, the Santa Clara, Calif.

Nvidia - the world’s largest company - has posted a stellar profit in the third quarter of the year, calming concerns about an AI bubble and boosting its share price.

The chip maker said revenue for the three months to October jumped 62 per cent to $57billion (£43.6billion).