Nvidia Forecast Fuels Tech Rally as AI Boom Continues

Nvidia's robust forecast has lifted the technology-heavy Nasdaq and S&P 500 indices. The chipmaker's revenue growth projection of 70% in 2027 is well above Morgan Stanley's estimate, fueling gains in tech stocks.

Shares of Nvidia jumped 8.7% after the company's earnings beat and strong guidance met lofty investor expectations. This has bolstered the view that the tech rally still has room to run as companies at the heart of AI buildout continue to deliver impressive growth.

eToro's global market strategist, Lale Akoner, said Nvidia's results show that 'the AI boom is not running out of demand.' However, delivering this growth is becoming more expensive and capital-intensive.