Global technology shares rallied sharply on Thursday after Nvidia reported another blockbuster quarter, reinforcing confidence that the artificial intelligence boom remains intact despite mounting concerns over overheated valuations.
The chipmaker’s results eased fears of a potential AI bubble while underscoring persistent demand for advanced AI hardware across cloud, enterprise, and semiconductor supply chains.
Nvidia stock jumped 5% in premarket trading, putting the company on track to add roughly US$243 billion to its market value, more than the entire market capitalizations of companies such as PepsiCo and Goldman Sachs.
The stock’s rise helped lift sentiment across the global tech sector, pushing major chipmakers and AI-linked stocks higher in the US, Europe, and Asia.
Strong earnings temper bubble concerns
Nvidia delivered revenue of US$57.01 billion, up 62% year-on-year, marking its first acceleration in seven quarters.
The earnings beat reflected surging demand for data-center chips, with the company issuing guidance that topped market expectations.
Margins are expected to hold in the mid-70% range through fiscal 2027.
Analysts widely praised the strong performance, describing it as further evidence that the AI boom remains durable.
“Incredible” demand continues to outpace supply, CEO Jensen Huang said, adding that bookings already extend into 2026.
While acknowledging industry chatter about a potential AI bubble, he argued that Nvidia is seeing “something very different from a fleeting hype cycle” due to deep integration across cloud, enterprise, and edge computing.
JP Morgan analysts said the company delivered “not just solid results and guidance, but a beat-and-raise that was even stronger than expected,” calling it a testament to strong execution across Nvidia’s supply chain.
The company recently became the first chipmaker to surpass a US$5 trillion market valuation, cementing its position as the bellwether of the AI era.
Even so, some experts cautioned that Nvidia’s fortunes remain closely tied to customer capital expenditures and financing conditions.
Karen McCormick, CIO at Beringea, noted the growing consolidation and interconnectedness of major AI firms, describing the landscape as “almost a little bit nerve-wracking” if any part of the ecosystem falters.
Still, she stressed that industry players maintain “incredibly robust balance sheets” that may help limit downside risk.
Global rally highlights market confidence
The upbeat results sparked a global rally in semiconductor and AI-linked equities.
In the US, shares of AMD and Intel rose about 5% and 1%, respectively, while Arm Holdings, Micron Technology, Marvell Technology, and Broadcom gained between 2% and 3%.
European semiconductor names also surged, with ASML up 3.5% and the broader European tech index was also in green.
Dutch chip-equipment makers BESI and ASMI advanced more than 3% and 2%, respectively.
Asian markets echoed the positive momentum.
Taiwan Semiconductor Manufacturing Co. jumped 4.3%, SK Hynix gained more than 1.6%, and Japan’s Nikkei reclaimed the 50,000 mark, supported by strength in chip suppliers and AI-exposed shares.
Samsung Electronics and Foxconn also posted gains of more than 3%.
Nvidia’s stock is now up nearly 39% year-to-date and has risen over 1,190% across the past three years.
UBS Global Wealth Management CIO Mark Haefele said AI exposure remains “essential for long-term wealth building,” urging investors to diversify across the AI value chain.
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