Stocks
Nvidia Shares Surge on Strong AI Spending Outlook
Nvidia's shares rose significantly on Thursday after the company signaled that its AI spending boom will continue for years to come, despite concerns about supply bottlenecks and financial ties with customers.
The chipmaker's strong long-term outlook led to a 6.7% increase in share price, valuing the company at over $340 billion more than it was just before trading began.
Nvidia forecasted a 70% revenue growth for next fiscal year and reported current-quarter sales above Wall Street estimates, giving investors confidence that the AI spending boom is intact.
The upbeat outlook had a ripple effect across global semiconductor markets, with AI-linked stocks rising in Europe and China.