Nvidia on Wednesday forecast a roughly threefold surge in quarterly revenue that handily beat estimates as the company banked on towering demand for its industry-leading artificial-intelligence chips, sending its shares higher.
Nvidia’s stock was up nearly 11 per cent in early trading Thursday.
The already-hefty demand for the company’s data center chips and graphics processing units (GPUs) continues to grow as firms scramble to expand their AI offerings. Nvidia’s silicon dominates the global market for AI chips, where it counts the likes of Microsoft among its customers.
“The market was poised to sell the news following Nvidia’s earnings, given the sky-high expectations and deteriorating macro conditions,” Investing.com analyst Thomas Monteiro said.
“However, once again, the company left no doubt that the AI boom is much more than just a stock market narrative, but rather, the most significant bet from corporations worldwide at this moment.”
Story continues below advertisement
The late-day stock jump lifted the market …