Nvidia shares climbed nearly 9% on Thursday following strong earnings and positive growth forecasts for the semiconductor chipmaker.
Nvidia shares rose almost 9% on Thursday after the company reported strong earnings that doubled its sales from a year ago. The company also provided forecasts for continued growth in the artificial intelligence boom.
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This performance helped lift other semiconductor stocks and the broader market, with the Nasdaq rising 1.57% and the S&P 500 rising 0.72%. Semiconductor companies are currently outperforming Big Tech stocks. Chip stocks have accounted for 37% of the S&P 500's market value gains this year, while an ETF tracking semiconductor stocks is up 70% year-to-date. In contrast, an ETF tracking the Magnificent Seven Big Tech stocks is up only 4% this year. While chipmakers like Micron Technology and Marvell Technology have seen significant gains, the market's heavy reliance on these stocks presents risks. Investors are closely monitoring Big Tech spending on AI infrastructure to determine if future profits for chipmakers will remain steady.