The positive results have quelled concerns that the surge in spending on data-center equipment over the past year might be due for a slowdown. Nvidia's strong performance suggests the market still has room to run.
Key takeaways:
- Nvidia Corp. has given a positive signal to traders betting on the continued rally in artificial intelligence computing stocks.
- The company's own stock is also expected to continue its upward trend.
- Nvidia's recent earnings report and forecast exceeded expectations, leading to a more than 7% increase in its shares in postmarket trading.
- The strong performance has eased concerns that the recent increase in spending on data-center equipment might be due for a slowdown.