Global technology shares rallied on Thursday after Nvidia’s quarterly results signalled that demand for artificial intelligence hardware remains strong.
Nvidia is on track to add about $243 billion to its market cap, which is more than the entire valuation of companies such as PepsiCo and Goldman Sachs, if gains hold, with shares up 5% at $196.53 in premarket trading, it was reported on Thursday.
The results tempered some concerns over a potential AI bubble, although questions lingered around the sustainability of the massive spending boom, not paying off as anticipated.
Bullish spirit lifted many tech stocks around the world, with shares of U.S. chipmakers Advanced Micro Devices and Intel rising about 5% and 2% respectively, while Arm Holdings, Micron Technology, and Broadcom gained between 1% and 3%.
The European tech index climbed 1.2%, with ASML gaining 2.1%.
Across Asia, Taiwan’s TSMC jumped 4.3%, SK Hynix gained over 1.6% and Japan’s Nikkei reclaimed the 50,000 mark as chip suppliers and AI-linked stocks surged.
Nvidia’s forward price-to-earnings ratio stands at 28.44, below AMD’s 35.70 and far lower than Intel’s 62.38.
The results marked Nvidia’s first acceleration in seven quarters, powered by surging data-center sales. Revenue guidance topped estimates, and margins are expected to hold in the mid-70% range through fiscal year 2027.
