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Nvidia Corp's blowout forecast sparks almost $260 billion AI rally

The Santa Clara, company gained as much as 29 per cent in extended US trading, on course for a record high, after saying it expects about $11 billion of sales in the three months ending July

Nvidia

Nvidia (Photo: Bloomberg)

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Nvidia’s forecast for surging revenue surprised even the most bullish analysts on Wall Street, propelling the chipmaker to the cusp of a $1 trillion market capitalization and igniting a global jump in stocks linked to artificial intelligence.
 
The Santa Clara, company gained as much as 29 per cent in extended US trading, on course for a record high, after saying it expects about $11 billion of sales in the three months ending July. That gain puts Nvidia on track also to rack up the biggest one-day valuation jump in US company history. Nvidia inflamed already lofty expectations for a burgeoning technology.

Rival chipmaker Advanced Micro Devices Inc. jumped 10 per cent, while its suppliers from Taiwan Semiconductor Manufacturing to Advantest also climbed. ASML Holding NV, which supplies gear to TSMC, gained more than $6 billion in early trading. Along with memory chipmaker SK Hynix, they collectively gained almost $263 billion of value in 
a market.

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First Published: May 25 2023 | 10:37 PM IST

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