Nvidia shares jumped about 7% on Thursday after the chipmaker’s strong quarterly earnings and bullish revenue forecast eased worries that the artificial intelligence spending boom was slowing. The stock rose after Nvidia reported second-quarter revenue of $96.2 billion, up 106% from a year earlier and ahead of Wall Street estimates. The company also forecast about $108 billion in revenue for the current quarter, above analyst expectations.The results helped revive confidence in the AI trade after recent concerns that data centre spending by Big Tech companies may have run too far, too fast. Nvidia’s outlook suggested that demand for its AI chips remains strong, even after a massive rally in the stock over the last three years.AI spending still strongNvidia gave investors a longer view than usual, projecting revenue growth of about 70% in the fiscal year ending January 2028. The company typically gives quarterly guidance, making the longer-term projection important for markets trying to judge the durability of AI spending.Chief Executive Jensen Huang said the AI buildout remains at “full steam,” according to Investopedia. Investors focused more on the outlook than on the backward-looking numbers, with the company’s revenue forecast for the current quarter beating consensus estimates of about $104.2 billion.Nvidia’s data centre business remains the main driver of growth. Fortune reported that data centre revenue came in at $89 billion, beating analyst estimates of $85.7 billion.Chip stocks rallyThe results also lifted other chip stocks, as investors read Nvidia’s forecast as a signal that the AI infrastructure cycle still has room to run.The rally comes after Nvidia had lagged some chip peers in 2026, despite remaining the world’s most valuable company. Investors had grown worried about the scale of AI-linked capital spending by technology giants and whether Nvidia’s own investments in some customers could raise questions about demand quality.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)