BY COMFORT OGBONNA
Shares of Nvidia rose modestly in early Frankfurt trading on Thursday after the chipmaker projected first-quarter revenue above market expectations, signaling continued strength in demand for its artificial intelligence processors.
By 0703 GMT, Nvidia stock was up 1.4% in Frankfurt, reflecting investor optimism that spending by major technology companies on AI infrastructure remains robust despite broader concerns about valuations in the sector.
The company’s forecast reinforced confidence that large-scale investments in AI data centers and advanced computing hardware are continuing at a rapid pace. Nvidia has been a primary beneficiary of the AI boom, supplying high-performance graphics processing units (GPUs) that power generative AI models, cloud computing platforms and enterprise applications.
In the United States, Nvidia shares have gained nearly 5% so far in 2026. However, the stock remains below its record high reached in October last year, when enthusiasm surrounding AI-driven growth pushed valuations to historic levels.
The latest guidance suggests that demand from major cloud providers and other Big Tech firms remains strong, easing concerns that capital expenditure on AI infrastructure might slow after an intense period of expansion. Investors are closely watching whether revenue growth can justify elevated share prices and sustain momentum in global technology markets.
With Nvidia positioned at the center of the AI ecosystem, its performance continues to influence broader market sentiment, particularly across semiconductor and high-growth technology stocks.
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