Investors fretted about the potential for an earnings-related selloff in Nvidia shares headed into the quarter. They’re now breathing a sigh of relief.
Nvidia shares have jumped 7.7% in late trading Wednesday on the graphics chip company’s strong quarter and impressive guidance. Shares of other plays on artificial intelligence were also rising, setting the stage for a tech rally on Thursday.
In after-hours trading, Advanced Micro Devices was up 2.5%, Intel 0.7% higher, Qualcomm up 1.2%, and memory chip giant Micron up 1.5%.
Broadcom, which among other things make chips used in AI data center networking applications, is up 2.5%. Arista Networks, a networking equipment company widely seen as a play on the AI trend, is up 2.2%. Taiwan Semiconductor, which makes chips for Nvidia, is up 3% in late trading.
The data center service company Super Micro Computer is up 5.2% in late trading, erasing most of a 6.8% decline in Wednesday’s regular session.
The Nvidia results are also bolstering shares of the large cloud computing companies, with Amazon up 0.6%, Microsoft 0.3% higher, and Alphabet up 1%. Meta Platforms is up 1.2%.
AI application plays are gaining ground as well, with Palantir up 4.3% after hours and C3.ai up 4.5%.
Synopsys, the chip design software company, also posted results Wednesday afternoon. It specifically called out AI as a driver for its strong January quarter results. Synopsys is up 3% after hours, while shares of rival Cadence Design Systems have rallied 4%.
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