Nvidia shares jumped on Thursday after the chipmaker delivered a strong outlook that suggested the global AI spending boom could continue for years. The company’s forecast gave investors fresh confidence that demand for artificial intelligence infrastructure remains strong despite concerns over supply shortages and customer finances.
Nvidia shares rose 6.7% to $223.71 before the market opened, potentially adding around $340 billion to its market value. The company also expects 70% revenue growth next fiscal year, sending a positive signal to investors.
Nvidia reported $96.2 billion in second-quarter revenue, beating Wall Street expectations. Data center revenue was the main driver, reaching $89 billion as companies continue investing heavily in AI computing infrastructure.
CEO Jensen Huang said AI has reached an “inflection point” as the technology moves from testing and experimentation toward real-world use. Nvidia also highlighted growing demand from AI research companies and cloud providers such as CoreWeave and Nebius.
The positive results lifted other AI-related stocks. CoreWeave shares gained 5.8%, while Nebius rose 7.2%. Nvidia’s expanding relationship with Amazon Web Services and its cloud revenue-sharing strategy could also provide additional growth opportunities.
At least 10 brokerages raised their Nvidia price targets following the results. Morgan Stanley analysts noted that achieving 70% growth while facing supply constraints was particularly impressive.
Nvidia’s valuation also remains attractive compared with some competitors. The stock trades at about 17.9 times forward earnings, compared with 37.2 times for AMD and 46.2 times for Intel.
Overall, Nvidia’s latest forecast suggests that AI infrastructure investment remains a major growth opportunity. While supply challenges and valuation concerns remain, strong demand and expanding AI adoption could support Nvidia’s growth for years to come.
