Key Points
- Nvidia’s outstanding quarterly results have boosted tech stocks globally and eased fears of an AI bubble.
- Nvidia’s stock jumped by more than 5%, potentially adding $243 billion to its market value.
- The positive sentiment lifted other chipmakers and AI-related stocks in the U.S., Europe, and Asia.
- Nvidia’s CEO, Jensen Huang, dismissed bubble concerns, citing “incredible” and long-term demand.
Global technology stocks rallied on Thursday after Nvidia’s incredible quarterly results showed that demand for artificial intelligence hardware remains very strong. The chipmaker’s impressive performance helped to ease some of the growing concerns about a potential AI bubble.
Nvidia’s shares were up more than 5% in early trading. If these gains hold, the company will add about $243 billion to its market value—more than the entire valuation of major companies like PepsiCo and Goldman Sachs.
This bullish sentiment spread to other tech stocks worldwide. Shares of U.S. chipmakers AMD and Intel rose about 4% and 3%, respectively. In Europe, the tech index climbed nearly 1%, and in Asia, shares of chip suppliers and AI-related companies also surged.
Investors were encouraged after Nvidia CEO Jensen Huang dismissed concerns about a bubble. He called the demand for his company’s chips “incredible” and noted that bookings are already extending into 2026. “We see something very different from a fleeting hype cycle,” he said.
While some saw Nvidia’s results as proof that the AI boom is far from over, others remain worried. They point to external risks, such as the massive spending and financing needs of Nvidia’s customers, as well as the challenges of building out sufficient data center capacity amid energy and memory chip shortages.
Despite these concerns, Nvidia’s position as the face of the AI revolution has made it the only company in the world to surpass a $5 trillion valuation. Its stock price has soared by more than 1,190% over the past three years.
The latest results marked Nvidia’s first acceleration in seven quarters, driven by booming data-center sales. The company’s revenue forecast topped estimates, and it expects its profit margins to remain high. “Demand still outstrips supply, with hyperscalers and server makers buying aggressively,” said Bob O’Donnell, an analyst at Technalysis Research.
