Nvidia earnings boost tech stocks across the world

A stellar forecast from chip designer Nvidia Corp. boosted tech stocks across the world on Thursday.

Shares of Nvidia were last up 3%, paring some gains after touching a fresh record high of $502.66 earlier in the session. 

On Wednesday,  Nvidia forecast the fiscal second quarter revenue that beat expectations, boosting investors’ confidence.

The Silicon Valley-based company said its sales doubled year-on-year to $13.5 billion in the latest quarter.

It reported a net profit at $6.2 billion, 843% higher than a year ago.

The company also said it would buy back $25 billion in stock.

Nvidia said its revenue in the current quarter would rise to $16 billion.

So far this year, the company's share price has more than tripled.

At 09:41 am ET, Nvidia's market capitalization was $1.21 trillion.

In May this year, the tech giant became the first-ever semiconductor company to rack up a $1 trillion market valuation after another strong quarter. 

The artificial intelligence (AI) bellwether has been the biggest beneficiary of the rise of generative AI apps such as ChatGPT.

Shares of AI-related chip stocks including Micron Technology rose 1.3%, Broadcom gained 3.3%.

US-listed shares of Taiwan Semiconductor Manufacturing Co (TSMC) added 1%.

In Europe, chipmakers buoyed the tech sector shares. 

In Asia, shares of chip companies also rose after Nvidia's results.

On Wall Street on Thursday, the S&P 500 was 0.4% lower in midday trading after paring earlier gain.

The Dow Jones Industrial Average edged down 83 points, or 0.2%, at 34,389. The Nasdaq composite slipped 0.7%.

“A new computing era has begun,” Nvidia chief executive officer Jensen Huang said after the earnings report.

Huang became $4.2 billion richer after the company’s earnings.

According to the Bloomberg Billionaires Index, Huang’s total fortune surged to $46.1 billion. 

Huang holds 3.5% stake in Nvidia.

Nvidia was co-founded in 1993 by Huang.