Global stock markets experienced a significant rebound of £200 billion on Thursday following optimistic remarks from the CEO of the world’s largest company regarding concerns of an AI bubble.

Nvidia, a prominent US tech company heavily involved in AI technology, reported a remarkable 62% increase in sales to £43.6 billion for the three months ending in October. CEO Jensen Huang expressed confidence in the company’s position amidst discussions of an AI bubble.

The positive results from Nvidia sparked a rally across global stock markets, with the FTSE All World Index climbing by 0.3%. In the UK, the FTSE 100 surged by nearly 70 points during mid-morning trading, although it remains below the recent peak of nearly 10,000.

The recent volatility in technology company valuations raised concerns about a potential bubble that could lead to substantial losses for investors. Nvidia’s robust performance also benefited its competitors like Google’s parent company Alphabet and Microsoft.

While some experts remain cautious about the sustainability of AI growth, others believe that Nvidia’s strong earnings signal potential upside for the market. The reassuring results provided a sense of stability to investors, easing fears of a market downturn.

Overall, Nvidia’s impressive earnings have instilled confidence in the market, dispelling some apprehensions about an AI bubble and highlighting the potential for continued growth in AI stocks.