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Nvidia shares rose 9% on Thursday after the chip company's revenue guidance reassured investors that artificial intelligence demand will remain strong. The gain followed earnings the company reported as blockbuster.
Nvidia occupies an early position in the AI supply chain. Chips are ordered before infrastructure is built, and infrastructure is built before workloads run.
That sequencing means guidance from a chip supplier carries information about what buyers expect several quarters ahead.
When Nvidia's revenue outlook holds or rises, it signals that the organizations building AI systems are still committing capital. Thursday's session followed that logic.
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