SANTA CLARA, California: Nvidia shares surged on August 27 after the chipmaker issued an unusually long-term revenue forecast that helped ease investor concerns about slowing artificial intelligence spending and triggered gains across semiconductor stocks.

Nvidia shares jumped 6.8%, putting the company on track to add about $295.7 billion in market value and marking its best single-day performance since June 1 if the gains hold.

The rally followed Nvidia's forecast on Wednesday for a 70% increase in revenue in its next fiscal year, an unusual move for a company that typically provides only quarterly projections. It also beat revenue and profit expectations for the second quarter.

The outlook helped reassure investors who had grown concerned about whether the rapid buildout of AI infrastructure could continue at its recent pace.

The forecast confirmed the "AI build-out will continue at full speed and Nvidia will continue to put a notable part of this spending in its pockets," Ipek Ozkardeskaya, analyst at Swissquote, said.

"It's impossible for investors to turn their backs on this company: it is growing fast, and it is incredibly profitable. This is not pricing in a dream; this is reality."

Nvidia has risen more than 1,000% over the past three years to become the world's most valuable company, but its shares had gained just 12% in 2026 before Thursday's move.

Investor concerns have included uncertainty over spending by large technology companies on data centers and Nvidia's investments in some firms that are also its customers.

Efforts by customers including OpenAI to develop their own chips as alternatives to Nvidia's costly and supply-constrained processors have also added pressure.

The company's stronger outlook lifted other AI-linked semiconductor stocks. Intel, Micron, Broadcom and U.S.-listed shares of South Korea's SK Hynix rose between 1.3% and 3.5%, contributing to a nearly $150 billion rally in chip stocks after technology shares also gained in Asia and Europe.

AI cloud computing companies CoreWeave and Nebius, which are backed by Nvidia and increasingly viewed as important to its business, rose between 2% and 4.5%.

At least 16 brokerages raised their price targets on Nvidia shares after the results showed strong demand for the company's next-generation Rubin AI processors, according to LSEG data.

Despite Nvidia's rapid growth, its forward price-to-earnings ratio stands at 17.9, below Advanced Micro Devices' 37.2 and Intel's 46.2, as analysts' earnings expectations have risen faster than Nvidia's share price.