Nvidia announced a significant surge in its quarterly profit, which climbed 65 percent year-over-year to $31.9 billion, and issued a revenue forecast that surpassed Wall Street expectations. This news helped to alleviate concerns among investors that spending on artificial intelligence infrastructure might be outstripping demand, a fear that had recently depressed technology stocks globally.
As the dominant supplier of chips essential for AI development, Nvidia's financial performance is closely watched as an indicator for the broader AI sector. The positive earnings report fueled a rally in Asian markets, with Japan's Nikkei 225 index rising approximately 4 percent, led by companies heavily invested in AI such as SoftBank.
South Korea's Kospi index also saw gains, with chipmakers Samsung Electronics and SK Hynix, both suppliers to Nvidia, increasing by over 3 percent. In the United States, Nvidia's stock rose more than 5 percent in after-hours trading.
The positive sentiment extended to broader market indicators, with futures for the S&P 500, which includes Nvidia as its largest component, climbing more than 1 percent. Competitors like Advanced Micro Devices and other technology firms are also anticipated to experience significant stock price increases following Nvidia's strong earnings.
