Global technology shares rallied Thursday after Nvidia's blow-out quarterly results signaled that demand for artificial intelligence hardware remains strong even as analysts caution the boom may be outpacing fundamentals.

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The chip bellwether's stellar results tempered some concerns over a potential AI bubble, although questions lingered around the sustainability of the massive spending boom not paying off as anticipated.
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"Nvidia's across-the-board beat shows the AI boom is far from over."
— Bob O'Donnell, chief analyst at Technalysis Research
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Nvidia is on track to add about $243 billion to its market cap, which is more than entire valuation of companies such as PepsiCo, and Goldman Sachs, if gains hold, with shares up 5% at $196.53 in premarket trading.

Bullish spirit lifted many tech stocks around the world, with shares of U.S. chipmakers Advanced Micro Devices and Intel rising about 5% and 2% respectively, while Arm Holdings, Micron Technology and Broadcom gained between 1% and 3%.

The European tech index climbed 1.2%, with ASML gaining 2.1%.

Across Asia, Taiwan's TSMC jumped 4.3%, SK Hynix gained over 1.6% and Japan's Nikkei reclaimed the 50,000 mark as chip suppliers and AI-linked stocks surged.

Chief Executive Jensen Huang dismissed bubble concerns, calling demand "incredible" and noting bookings extend into 2026. "We see something very different from a fleeting hype cycle," he said, pointing to Nvidia’s deep integration across cloud, enterprise, and edge computing.

"Amid a swell of concern heading into this print, Nvidia delivered not just solid results and guidance, but a beat-and-raise that was even stronger than most had expected," J.P.Morgan analysts said.

"In our view, a testament to strong execution across Nvidia's vast and complex supply chain."

The AI market bellwether is up about 39% so far this year. Post-earnings optimism has reversed its November losses, pushing Nvidia shares nearly 2% higher for the month after a surge of more than 1190% over the past three years.

Nvidia also became the first-ever chipmaker to cross the $5 trillion market cap mark, cementing its status as the face of the AI revolution.

"AI exposure is essential for long-term wealth building," said Mark Haefele, CIO at UBS Global Wealth Management. "Investors should diversify across the AI value chain—from enabling technologies to intelligence and application layers."

Nvidia's forward price-to-earnings ratio stands at 28.44, below AMD's 35.70 and far lower than Intel's 62.38.

The results marked Nvidia's first acceleration in seven quarters, powered by surging data-center sales. Revenue guidance topped estimates and margins are expected to hold in the mid-70% range through fiscal year 2027.

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Analysts hailed the beat-and-raise as proof the AI boom is intact, though some warned of risks tied to Nvidia customer's capex and financing.

"Nvidia's across-the-board beat shows the AI boom is far from over," said Bob O'Donnell, chief analyst at Technalysis Research. "Demand still outstrips supply, with hyperscalers and server makers buying aggressively."