BackNvidia earnings boost tech stocks across the world
Shares of Nvidia were last up 3%, paring some gains after touching a fresh record high of $502.66 earlier in the session
PremiumA 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.
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