Nvidia Ignites Chip Stock Rally with Rare Long-Term Revenue Projection

Nvidia's stock surged by 6.8% on Thursday after the company forecasted a 70% jump in next fiscal year's revenue, easing investor concerns about the AI boom.

The rare long-term projection came as Nvidia also beat revenue and profit expectations for the second quarter.

This move has put pressure on rival chip stocks, with Intel and Micron rising between 1.3% and 3.5%, while Advanced Micro Devices' forward price-to-earnings ratio remains at 37.2 times.

Ipek Ozkardeskaya, analyst at Swissquote, said the forecast confirmed that Nvidia will continue to benefit from AI-related spending.