Blowout earnings calm bubble fears and ignite a cross-continent melt-up in chips, software, and AI-linked equities
MARKET INSIDER – Global markets lit up on Thursday after Nvidia’s blockbuster earnings reignited the AI boom and sent technology shares surging from New York to Tokyo. The chip titan’s beat-and-raise quarter, paired with CEO Jensen Huang’s emphatic dismissal of bubble fears, eased investor anxiety and triggered one of the broadest tech rallies of the year. Nvidia is now poised to add a staggering $243 billion to its market value—more than the entire market cap of PepsiCo or Goldman Sachs—if gains hold.
The ripple effects were instant. U.S. chipmakers AMD and Intel climbed roughly 5% and 2%, while Arm, Micron, and Broadcom posted gains between 1% and 3%. Europe’s tech index jumped 1.2% as ASML lifted over 2%. Asia followed suit: TSMC surged 4.3%, SK Hynix advanced more than 1.6%, and Japan’s Nikkei reclaimed the 50,000 mark, powered by AI suppliers and semiconductor giants. The global synchronized move underscores how tightly equity markets have become tied to Nvidia’s performance—and to the broader AI investment narrative.
For Nvidia, the milestone was historic. The company became the first chipmaker ever to surpass a $5 trillion valuation, cementing its status as the face of the AI hardware revolution. Revenue growth accelerated for the first time in seven quarters, driven by a massive wave of data-center spending. Booking pipelines now stretch into 2026, with Huang describing demand as “incredible” and far from a hype cycle. “We see something very different from a fleeting trend,” he said, pointing to deep integration across cloud giants, enterprises, and edge computing customers.
Analysts were equally impressed. JPMorgan called the results “even stronger than expected,” crediting Nvidia’s ability to manage one of the most complex supply chains in tech. UBS Global Wealth Management’s CIO Mark Haefele said the results reinforce a broader truth for investors: “AI exposure is essential for long-term wealth building.” Nvidia’s forward P/E of 28.44 also remains well below AMD’s 35.70 and Intel’s 62.38—fueling arguments that valuation concerns may have been overstated.
Still, some on Wall Street warn that risk lingers beneath the euphoria, particularly around cloud-provider capex cycles and the financing burden of AI infrastructure. But for now, those concerns are overshadowed by the momentum unleashed by Jensen Huang’s earnings spectacle.
After weeks of market doubts about an AI cooldown, Nvidia’s latest results delivered a global reminder: the AI boom is not slowing—it’s accelerating. Whether the rally holds now depends on whether the rest of the tech world can keep pace with the company defining the era.
