Nvidia surges 6.5% after hours on record earnings and AI demand

Nvidia shares surged as much as 6.5% after hours after the chipmaker reported record quarterly sales and CEO Jensen Huang's bullish AI demand commentary soothed fears over the sustainability of the artificial intelligence investment cycle.

"The results validate our AI strategy," Huang said, adding that sales of Blackwell superchips were "off the charts" and that the company's graphics processing chips for cloud data centers were sold out.

The after-hours rally lifted S&P 500 futures 1.3% and Nasdaq futures 1.8%, while Asian and European tech stocks followed suit. Japan's Nikkei gained 2.7%, South Korea's Kospi rose 1.9%, and Dutch semiconductor-equipment maker ASML jumped 3%. The pan-European Stoxx 600 added 0.9%.

The earnings ease concerns that the AI investment cycle is slowing, a fear that had weighed on technology stocks in prior sessions. "It's fair to say that Nvidia's results have completely changed the market mood and pushed out any bubble fears for another day," Deutsche Bank analysts said in a note. Investors will watch for updated segment margins and forward guidance in the days ahead.

The strong results also boosted risk appetite across other assets. Bitcoin recovered 1.9% to $92,255 after plumbing a seven-month low earlier in the week, while Brent crude edged up 0.5% to $63.83 a barrel. The U.S. dollar strengthened, with the DXY index rising 0.1% to 100.284, as Federal Reserve minutes released Wednesday showed "strongly differing views" among policymakers on a December rate cut. The 10-year Treasury yield rose 1 basis point to 4.140%.

The guidance raise signals management expects AI demand to accelerate. Investors will watch Nvidia's next earnings call for updated data center segment margins and Blackwell production ramp details.

This article is for informational purposes only and does not constitute investment advice.