Nvidia shares surged 5.5% in premarket trading following stronger-than-expected third-quarter results announced after the market close on Wednesday. The AI powerhouse reported revenue of $57.01 billion, a 62% year-on-year increase, surpassing analyst forecasts. The company also delivered robust fourth-quarter sales guidance, fueling optimism across the tech sector. In a post-earnings call, Nvidia CEO Jensen Huang addressed concerns about a potential AI bubble, stating from the company’s perspective, “We see something very different.” He emphasized the sustained and diverse demand driving the AI revolution, extending beyond traditional hyperscaler capital expenditure to include demand from leading AI labs like OpenAI and Anthropic, enterprise adoption, software innovation, and the rise of sovereign AI initiatives. Ben Barringer, global head of technology research and investment strategist at Quilter Cheviot, told CNBC’s “Europe Early Edition” that Nvidia’s results provided relief on two fronts. First, the company exceeded expectations on gross margins—a key metric for semiconductor stocks. Second, Nvidia directly confronted major market concerns during the call, systematically addressing what Barringer described as “every elephant in the room.” He highlighted that Nvidia discussed scaling laws, supply chain dynamics, vendor financing, strategic partnerships, and its approach to the China market. “They really did a stand-up job of calling out every possible bear case and going through and giving their perspective on it,” Barringer said. The strong performance and forward-looking guidance helped reinvigorate investor confidence in the AI sector, which had seen recent pullbacks due to worries over high valuations, debt financing, and potential chip depreciation. The rally extended beyond Nvidia, lifting shares of key players in the AI supply chain during after-hours trading. Chipmakers Advanced Micro Devices and Broadcom, along with power infrastructure firms like Eaton, saw notable gains. The momentum carried into Asia, where chip stocks rose on Thursday. Samsung Electronics and Hon Hai Precision Industry, commonly known as Foxconn, led the regional advance, reflecting broader market enthusiasm for AI-driven growth.