Global stock markets experienced a significant rebound of £200 billion on Thursday following positive remarks from the CEO of the world’s largest company, downplaying concerns of an AI bubble.
Nvidia, a prominent US tech company integral to AI development, reported a remarkable 62% surge in sales to £43.6 billion in the last quarter. CEO Jensen Huang dismissed AI bubble speculations, stating a different perspective.
The release of Nvidia’s strong financial results spurred a rally across global stock exchanges. The FTSE All World Index, representing a majority of global markets, saw a 0.3% increase.
In the UK, the FTSE 100 surged nearly 70 points during mid-morning trading, though still distant from last week’s peak near 10,000 points.
Recent weeks witnessed substantial value erosion in tech firms, fueling concerns of an inflated market, potentially leading to a burst bubble and substantial losses for various investors.
Nvidia’s robust performance also lifted the shares of competitors like Google parent company Alphabet and Microsoft, indicating a positive market sentiment.
Financial experts welcomed Nvidia’s results, indicating a reassuring signal amid recent market volatility. However, some analysts remain cautious about the sustainability of AI spending growth.
Market analysts noted that while Nvidia’s earnings may not entirely dispel bubble fears, the strong demand signals offer potential upside for investors.
Overall, Nvidia’s encouraging results have provided a sense of stability to jittery markets, instilling confidence among investors and rejuvenating market sentiment.