Nvidia's blockbuster earnings and 70% sales growth forecast reignite AI rally as chipmaker signals global spending boom

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Nvidia has delivered another blockbuster set of results and an ambitious growth forecast, strengthening investor confidence that the extraordinary global spending boom surrounding artificial intelligence has further to run.

The AI chipmaker said quarterly revenue reached $46.7 billion, up 56% from a year earlier, while data-centre revenue nearly doubled. More significantly, Nvidia forecast that sales could grow by approximately 70% in its next financial year, substantially exceeding previous Wall Street expectations.

Nvidia shares initially climbed around 5% following the announcement, helping lift technology stocks internationally. The company's performance is closely watched because its advanced processors underpin much of the computing infrastructure being built by technology groups racing to develop increasingly powerful AI systems.

Chief executive Jensen Huang said, "Nvidia's latest Rubin computing platform was seeing exceptional demand, telling investors that Rubin is going to be a monster."

The results helped address growing concerns that enormous spending on AI data centres could begin slowing. Major technology companies including Microsoft, Alphabet, Amazon and Meta have committed hundreds of billions of dollars to AI infrastructure, creating unprecedented demand for Nvidia's processors.

However, investors continue to scrutinise whether such expenditure will ultimately generate sufficient financial returns. Nvidia's growth also faces potential constraints from US restrictions affecting sales of advanced processors to China.

Wall Street's broader reaction was nevertheless positive. The technology-heavy Nasdaq outperformed other major US indices on Thursday, while semiconductor shares strengthened as investors reassessed the durability of the AI investment cycle.

Nvidia's outlook therefore carries significance far beyond its own share price. The company has effectively become a bellwether for the global AI investment boom, meaning continued rapid growth provides important evidence that demand for artificial-intelligence infrastructure remains exceptionally strong.