Finance

AI Mania Resumes, With Nvidia Outlook Saving Broader Market

The company gave revenue guidance for the current period that beat Wall Street’s lofty expectations, signaling demand remains solid for the hardware behind what purports to herald a revolution in productivity — and profitability.

Nvidia, the fourth-biggest component of the Nasdaq 100, with a 5% weighting, rallied 8% in post-market New York trading. Nvidia competitors Advanced Micro Devices Inc. and Intel Corp. rose as well. Nasdaq 100 futures climbed more than 1%.

SK Hynix Inc., a key supplier of memory chips to Nvidia, jumped as much as 4.7% in early trading in Seoul on Thursday. Japanese chip-tester maker Advantest Corp. surged 6.3%. Top AI chip foundry Taiwan Semiconductor Manufacturing Co. rose 2.1%.

Wall Street’s reaction to Nvidia’s earnings:

Kim Forrest, chief investment officer of Bokeh Capital Partners LLC:

Nvidia has been the driver of the market for the past 11 months, as goes Nvidia, so goes the market. And it looks like the results are good enough – not a huge positive or a negative surprise. It does confirm the narrative that AI is going to continue to be strong for the foreseeable future.

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