Nvidia shares jumped about 7% on Thursday after the chipmaker’s strong quarterly earnings and bullish revenue forecast eased worries that the artificial intelligence spending boom was slowing. The stock rose after Nvidia reported second-quarter revenue of $96.2 billion, up 106% from a year earlier and ahead of Wall Street estimates. The company also forecast about $108 billion in revenue for the current quarter, above analyst expectations.
The results helped revive confidence in the AI trade after recent concerns that data centre spending by Big Tech companies may have run too far, too fast. Nvidia’s outlook suggested that demand for its AI chips remains strong, even after a massive rally in the stock over the last three years.
