Why is the stock market up today? Nvidia earnings boosts tech

Nvidia Earnings Ignite Broad Market Rally

U.S. equities are posting strong gains on Thursday as Nvidia’s standout quarterly results restore confidence in the AI trade and lift all major indexes.

At 16:54 GMT, the S&P 500 is up 1.38% at 6,733.68, the Nasdaq has climbed 1.76% to 22,962.117, and the Dow Jones is higher by 1.15% at 46,669.98. Traders are treating Nvidia’s 62% year-over-year revenue surge to $57 billion as confirmation that enterprise and cloud spending on AI remains firmly intact.

Nvidia also topped earnings expectations with $1.30 per share versus projections of $1.26, while projecting fourth-quarter revenue of $65 billion plus or minus 2%, well above the $62 billion forecast. CEO Jensen Huang underscored continued strength in AI demand, noting that cloud GPUs are fully booked and Blackwell-related sales continue to expand rapidly.

How Strong Is AI Infrastructure Demand Right Now?

Nvidia’s data center revenue reached $51.2 billion, up 25% from last quarter and 66% from last year, reinforcing the scale of AI infrastructure spending by hyperscalers. Microsoft, Meta, Amazon and Google expect to commit more than $380 billion to AI infrastructure this year, with management teams across the group signalling continued investment rather than moderation.

During the earnings call, CFO Colette Kress highlighted practical returns from these deployments, noting Meta’s improved user engagement from AI recommendation engines, Anthropic’s expected $7 billion in annual revenue, and Salesforce’s 30% jump in engineering efficiency from AI-assisted coding. Traders see this as evidence that capital flowing into AI infrastructure is producing measurable payoffs.

Which Stocks Are Benefiting the Most?

Technology is leading sector performance with a 1.6% rise to 5,700.29. Nvidia shares are up 2.56% to $192.29, while Broadcom is gaining 4.77% and AMD is rebounding strongly. The enthusiasm extends to the “Magnificent Seven,” with Alphabet Class C up 3.31% and Tesla higher by 4.27%.

Gains are not limited to tech. Communication Services is advancing 1.95%, Energy is up 1.61%, and Consumer Discretionary is rising 1.51%.

Notable individual movers include Regeneron Pharmaceuticals, up 6.69%, and Diamondback Energy, gaining 3.62%, reinforcing the broad enthusiasm across sectors.

Is Market Sentiment Turning Toward Renewed Growth?

The strength of today’s rally reflects a clear shift in sentiment. Investors who had raised concerns about an AI bubble now appear more confident after Nvidia revealed $500 billion in GPU orders for 2025 and 2026, with Kress suggesting this total will increase further. Analysts note that these commitments reduce uncertainty around sustained demand through next year.

Short-Term Market Forecast

With hyperscalers maintaining aggressive investment plans, Nvidia delivering stronger-than-expected guidance, and sector gains broadening across the S&P 500, short-term sentiment leans bullish. Traders will watch for further confirmation in upcoming earnings reports, but today’s reaction suggests the market views AI spending as durable rather than overextended.

More Information in our Economic Calendar.