Global technology stocks climbed sharply on Thursday after Nvidia reported stronger-than-expected earnings, restoring investor confidence in the AI sector and easing concerns that the recent boom may have been heading toward a bubble.
Nvidia posted a 62% year-on-year revenue jump to $57.01 billion, beating forecasts and issuing upbeat guidance for the fourth quarter. The bullish results sent its shares up 5% in premarket trading, sparking a broad relief rally across global tech markets.
European and Asian AI Stocks Advance
In Europe, semiconductor firms saw immediate gains. Dutch chip companies BESI and ASMI rose more than 3% and 2%, respectively, during early trading. Semiconductor equipment giant ASML added 2.1%.
Asian markets also responded positively. Samsung Electronics advanced 3.5%, while Hon Hai Precision Industry (Foxconn) climbed 3.3%.
U.S. Tech Names Rally Premarket
U.S. investors aggressively returned to tech stocks ahead of the market open. AMD gained 5%, Arm nearly 4%, Micron 2.7%, Marvell Technology 3.3%, Broadcom 3.1%, and Intel rose 2%.
“Phenomenal Growth,” Say Investors
Dan Hanbury, global equity portfolio manager at Ninety One and a major Nvidia shareholder, said the company’s performance continues to impress.
“Three years ago, they were delivering $15 billion in data center revenue; now forecasts are approaching $280 billion for next year,” Hanbury told CNBC. “That is phenomenal growth.”
However, he cautioned that strong early reactions in premarket trading can sometimes fade later in the day.
Concerns Over AI Ecosystem Interdependence
Karen McCormick, chief investment officer at Beringea, voiced concerns about increasingly close financial ties within Silicon Valley’s AI ecosystem. She pointed to massive investments such as the recent plan by Nvidia and Microsoft to invest up to $15 billion in Anthropic.
“It’s almost a little bit nerve-wracking,” McCormick said. “If we are in a bubble and any of it bursts, what happens to all the related businesses?”
Still, she emphasized that major tech firms maintain strong balance sheets, making any systemic collapse less likely.
Not Another 1999, Analysts Say
Ben Barringer, global head of technology research at Quilter Cheviot, pushed back against comparisons to the dot-com bubble.
“Valuations aren’t particularly excessive,” he said, noting that companies like Meta and Amazon remain in net cash positions despite recent debt issuances. “It’s nowhere near as bad as 1999.”
While concerns persist about companies raising large amounts of debt to build AI data centers, analysts say Nvidia itself is not the source of risk.
Gil Luria of D.A. Davidson added, “Any concerns about Nvidia were laid to rest with its earnings. But we still need to keep an eye on companies borrowing heavily to build data centers.”
The broader rally suggests investors are, for now, reassured that AI-led growth remains intact — and that the sector’s momentum may continue into next year.
