Nvidia’s Blowout Forecast Sparks Huge Rally in All Things AI

  • Other chipmakers and AI-related software stocks are climbing
  • Investors were looking for evidence AI boom is boosting sales

WATCH: Nvidia Delivers Bullish Forecast on AI Boom

Source: Bloomberg

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Nvidia Corp.’s forecast for surging revenue surprised even the most bullish analysts on Wall Street, propelling the chipmaker to the cusp of a $1 trillion market capitalization and igniting a global jump in stocks linked to artificial intelligence.

The Santa Clara, California-based company gained as much as 26%, hitting an intraday record, after saying it expects about $11 billion of sales in the three months ending July. Analysts had estimated that figure was going to be roughly $7.2 billion.