Nvidia's stock price surges 10% to a new record high following a forecast that indicates continued demand for AI chips.

• Nvidia's shares reached a new record high on Thursday following the company's successful beating of both earnings and revenue forecasts for the first quarter.
• The chipmaker also announced a 10-for-1 stock split on Wednesday in its report.
• Wall Street analysts have since grown more bullish following the results.

On Thursday, shares of the company surged more than 10% after it reported earnings that exceeded Wall Street expectations and demonstrated the continued demand for its AI chips. Additionally, the company's data center revenue increased by an impressive 427% during the quarter.

Despite the LSEG estimate of $24.65 billion, first-quarter revenue exceeded expectations at $26.04 billion, and demand remains unwavering.

The company forecasted $28 billion in revenue for the current quarter, surpassing the LSEG projection of $26.61 billion.

For the first time, shares passed $1,000, reaching an all-time high of $1,051.96 during intraday trading, and are up about 111% this year. Its previous high of $953.86 was set on May 21.

Although some analysts are concerned about a potential "air pocket," others have become more optimistic about the company following its results. Bernstein's Stacy Rasgon raised the firm's price target to $1,300, stating in a note to investors that the company's narrative is far from over and its peak has not yet been reached. Rasgon believes that shares are undervalued.

Jefferies increased its target price for the stock to $1,350 due to the strong demand for its new AI graphics processors, Blackwell, and expectations of a significant increase in "magnitude of beats" when the platform is launched later this year.

In the most recent quarter, Nvidia reported a net income of $14.88 billion, which translates to $5.98 per share, marking a significant increase from the $2.04 billion, or 82 cents per share, recorded in the previous quarter.

Nvidia announced a 10-for-1 stock split on Wednesday, with trading of split-adjusted shares beginning at market open on June 10.