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

Firms such as Blue Owl Capital have raised trillions in investing firepower. The artificial-intelligence build-out is a perfect match, though warning signs are flashing.

Computer chip maker Nvidia is at the head of the artificial intelligence revolution. Its results could determine where markets — and the economy — go next.

Analysts see demand for high-grade AI hardware from Nvidia increasing in the coming quarters, staying upbeat even as investors fret over the AI trade.

The chip-maker reported record revenue, beating Wall Street estimates and increasing current-quarter guidance.

Nvidia shares surged after the AI chip leader beat third-quarter estimates and issued a stronger-than-expected revenue outlook, underscoring still-intense demand for its data center processors.

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 tumbling Thursday toward one of its worst days since its springtime sell-off, as Nvidia and other AI superstar stocks keep dropping on worries their prices shot too high. Wall Street is also questioning whether the coming cuts to interest rates that it’s been banking on will actually happen.

Wall Street loves lower interest rates because they can goose the economy and prices for investments, even though they can also worsen inflation. A halt in cuts could undercut U.S. stock prices after they already ran to records in part on expectations for more reductions.