Nvidia Corp. shares surged 6.8% on Thursday after the chipmaker issued an unusually long-term revenue forecast and signaled sustained demand for its AI processors, extending a rally in chip stocks.
The advance placed Nvidia on track to add about $295.7 billion in market capitalization, the largest single-day gain on record for any company. The stock’s rise follows a 70% revenue growth forecast for the next fiscal year, a rare projection that contrasts with Nvidia’s typical quarterly guidance. The company also exceeded second-quarter revenue and profit expectations, reinforcing confidence in its dominance of the AI chip market.
Nvidia’s forward price-to-earnings ratio stands at 17.9, significantly below peers such as Advanced Micro Devices at 37.2 times and Intel at 46.2 times, according to LSEG data. The company’s shares have climbed roughly 12% in 2025, trailing some rival chipmakers despite a 1,000% surge over the past three years that made it the world’s most valuable company.
The broader AI-linked chip sector benefited from Nvidia’s momentum, with shares of Intel, Micron Technology, Broadcom, and South Korea’s SK Hynix rising between 1.3% and 3.5%. AI cloud computing firms CoreWeave and Nebius also gained 2% to 4.5%, contributing to a rally valued at nearly $150 billion across the sector.
Analysts cited Nvidia’s long-term outlook as a key driver, easing concerns that Big Tech’s data-center spending might slow. The forecast follows pressure on Nvidia from rising competition, including in-house chip development by customers like OpenAI, and supply constraints that have driven up costs. At least 16 brokerages raised their price targets on Nvidia’s stock, according to LSEG data.
Nvidia’s next-generation Rubin AI processors are expected to sustain demand, with the company emphasizing continued investment in AI infrastructure. The outlook suggests the AI build-out will persist at full speed, with Nvidia positioned to capture a significant portion of industry spending despite valuation concerns.
