By Caroline Valetkevitch
NEW YORK (Reuters) – A stronger-than-expected revenue forecast from Nvidia after the bell on Wednesday sent shares of the artificial intelligence chipmaker surging and fueled gains in other chip and technology stocks.
Shares of Nvidia were last up 3.5%, while Advanced Micro Devices rose 1.2% and Broadcom rose 0.8% in after-hours trading.
“I think I heard a collective sigh of relief on Wall Street because many investors and analysts were nervous about Nvidia and the entire technology hub leading up to this announcement,” said Michael Schulman, chief investment officer at Running Point Capital.
Shares of Super Micro Computer also rose in late trading, up 2%; Dell Technologies, up 1.5%; and Marvell Technology, up 1.1%.
Nvidia will conduct a ten-for-one stock split on Wednesday.
“The numbers are good, but the stock could trade lower tomorrow after investors really digest these numbers,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma.
Technology stocks have risen sharply since last year, led by Nvidia, amid optimism about AI. As of Wednesday’s close, Nvidia shares were up 91% for the year to date.
Nvidia shares closed 0.5% lower at $949.50 on the day, ahead of the results.
(Reporting by Caroline Valetkevitch in New York; Additional reporting by Arsheeya Bajwa in Bengaluru; Editing by Matthew Lewis)
