Blowing consensus estimates out of the water has become habitual for Nvidia (NVDA:NASDAQ), fuelling an astonishing eight-fold jump in the share price in less than two years. It’s most recent near-9% rally in the wake of more forecast-thumping earnings added an extra $230 billion to its market cap as investors continue to pile in on the promise of rampant revenue and profits growth from an AI revolution that looks increasingly real.

At the start of the year Nvidia already had a trillion-dollar market cap yet that has proved no barrier to investors or the stock, with it rallying 115% since then. 

It’s not just the growth being reported by the Santa Clara-based company, it’s the optimism of lots more to come that has really lit the touchpaper. ‘The next industrial revolution has begun,’ confidently predicted Jensen Huang, founder and chief executive of Nvidia last week.

‘AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.’

More hubris, sceptics might say, yet the numbers are increasingly difficult to argue with. 262% year-on-year revenue growth, net income up from $2 billion to almost $15 billion, and free cash flow that increased nearly sixfold to $14.9 billion year-on-year.

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