US stocks edged higher on Thursday, driven by strong gains in chip stocks after Nvidia’s upbeat earnings.
Nvidia shares rallied 9% on Thursday as its bumper revenue forecast boosred investor confidence in the AI-driven boom in chip demand.
ALSO READ: Nvidia profits soar over 600%, revenues above 200% as shares top $1,000
Nvidia, the world’s third-most valuable firm on Wednesday reported a net profit of $14.9 billion and revenue of $26 billion, almost four times as compared with the same fiscal quarter last year.
The chipmaker also announced stock split a 10-for-one on Wednesday and lifted its quarterly dividend by 150% as demand continues to exceed supply for its high-end chips.
According to Reuters, Nvidia CEO Jensen Huang said that he expected new AI models that are capable of creating video and engaging in human-like voice interactions to spur more orders for Nvidia’s processors.
At the opening bell, the Dow Jones Industrial Average rose 23.91 points, or 0.06%, to 39,694.95. The S&P 500 was higher by 33.25 points, or 0.63%, at 5,340.26, while the Nasdaq Composite gained 194.84 points, or 1.16%, to 16,996.39.
Nvidia earnings also lifted other chip stocks higher. AMD rose 1.2% and Super Micro Computer soared 5.7%.
Media giant News Corp. shares also rose 2.2% after it unveiled a deal to bring its content from The Wall Street Journal, New York Post and other news businesses to OpenAI.
The yield on the 10-year Treasury rose to 4.47% from 4.43% late on Wednesday. The 2-year yield climbed to 4.92% from 4.87%.
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Published: 23 May 2024, 07:31 PM IST
