Nvidia’s forecast adds fuel to rally in AI tech stocks By Reuters

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<span>© Reuters. FILE PHOTO: A Nvidia logo is seen on one of their products on display at their headquarters in Taipei, Taiwan May 31, 2023. REUTERS/Ann Wang/File Photo</span><br />
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<p>By Noel Randewich</p>
<p>(Reuters) – Nvidia (NASDAQ:)’s strong quarterly revenue forecast delivered on Wall Street’s high expectations on Wednesday, sparking gains in a range of AI-related stocks and giving a jolt to a stalled out U.S. stock market recovery.</p>
<p>Nvidia’s stock jumped nearly 10% after the bell to trade at $516, its highest level ever, lifting its stock market value by about $110 billion to $1.27 trillion and extending its lead as the world’s most valuable chipmaker.</p>
<p>That came after Santa Clara, California company gave a fiscal third-quarter revenue outlook above analysts’ expectations, boosted by soaring demand for its high-end chips that power much of the world’s major artificial intelligence technology. </p>
<p>Investors this week had anticipated Nvidia’s report as a potential spark to reignite gains in a sluggish U.s. stock market.</p>
<p>Nvidia’s shares have more than tripled this year, with the chipmaker at the center of a tech-stock rally fueled by optimism about the potential of AI.</p>
<p>“Without Nvidia, the sustained tech market rally we’re seeing might not exist,” said Insider Intelligence senior analyst Jacob Bourne. “The pressing question is whether Nvidia can consistently exceed the now-higher expectations.” </p>
<p>Nvidia’s strong forecast on Wednesday added to investor optimism. Big Tech and AI-related stocks saw their stock market values increase by over $70 billion, on top of Nvidia’s increased value, as their shares climbed following the report.</p>
<p>In extended trade, Microsoft (NASDAQ:) and Meta Platforms (NASDAQ:) added over 2%, while Google-owner Alphabet (NASDAQ:) added nearly 1%. Microsoft and Alphabet have are rushing to incorporate generative AI into their Web search platforms and other services.</p>
<p>AI software maker C3.ai jumped 5.6% and Palantir Technologies (NYSE:) PLTR.N&gt;, which recently launched its own AI platform, rose almost 5%.</p>
<p>AI-related component makers also rallied, with Advanced Micro Devices (NASDAQ:) and Broadcom (NASDAQ:) both up over 3%, Marvell (NASDAQ:) Technology climbing 5% and Super Micro Computer (NASDAQ:) rallying over 8%.</p>
<p>Nvidia forecast third-quarter revenue of about $16 billion, plus or minus 2%. Analysts polled by Refinitiv on average were expecting $12.61 billion. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/nvidias-forecast-adds-fuel-to-rally-in-ai-tech-stocks-3160252">Source link </a></p><p>The post <a href="https://forextraderhub.com/nvidias-forecast-adds-fuel-to-rally-in-ai-tech-stocks-by-reuters.html">Nvidia’s forecast adds fuel to rally in AI tech stocks By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>