Nvidia (NASDAQ:NVDA) shares rose 8.7% on Thursday, propelling tech stocks around the world, after the firm forecasted quarterly revenue that above forecasts and planned a $25 billion repurchase.

The results, announced late Wednesday, were driven by artificial intelligence (AI) boom-fueled demand for its chips, and will strengthen its place in the coveted trillion-dollar market value club, which it joined earlier this year.

According to Refinitiv data, more than 20 brokerages boosted their target price for Nvidia following the results report, with Elazar Advisors being the most positive at $1,600.

This indicates a more than threefold increase from the previous closing of $471.16.

Along with Rosenblatt Securities at $1,100, they are the only firms with Nvidia price targets above $1,000. The median price estimate for the chipmaker is $567.

Nvidia has reaped the most benefits from the emergence of ChatGPT and other generative AI programs, which are almost entirely driven by its graphics chips.

This year, the value of its shares has quadrupled, adding more than $700 billion to its market worth and making it the first trillion-dollar chip company.

"Given this year's run, everyone has been looking for ways to play AI that aren't as expensive as Nvidia." However, we believe that NVDA remains the best method to do this," said Bernstein analysts lead by Stacy A. Rasgon.

"Given the magnitude of the earnings revisions, we suspect the stock will still come out cheaper than it was going into print."

The findings are also viewed as sustaining a Wall Street rise, with futures tracking the tech-heavy Nasdaq 100 rising more than 1% and S&P 500 futures rising 0.7%.

"Nvidia news has a boosting effect on technology stocks, if only because it confirms that all the talk about the AI-craze wasn't for naught," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

A lot was riding on Nvidia's excellent results, since the AI-driven advance in Nvidia and other Big Tech companies has accounted for the majority of the S&P 500's nearly 15% year-to-date gains.

Analysts had cautioned that if the results beat was not large enough, the surge may be derailed because investors would doubt tech stock's expensive valuations in the face of increasing rates. [US/]

In other news, Taiwan Semiconductor Manufacturing Co (TSMC), a supplier to Nvidia, climbed 2.2%.

European chipmakers rallied as well, with ASM International (OTC:ASMIY), BE Semiconductor, and Aixtron each rising about 2%. Europe's IT index rose 1.1%, making it one of the region's top gainers. (This story has been resubmitted in order to update the spellings of 'Nvidia' in paragraph 14 and 'Bernstein' in paragraph 8)