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Nvidia's strong forecast lifts shares of AI chipmakers

Published 05/22/2024, 05:37 PM
Updated 05/22/2024, 05:40 PM
© Reuters. FILE PHOTO: A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017.  REUTERS/Mike Blake/File Photo
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By Caroline Valetkevitch

NEW YORK (Reuters) - A stronger-than-expected revenue forecast from Nvidia (NASDAQ:NVDA) after the bell on Wednesday lifted shares of the artificial-intelligence chipmaker and fueled gains in other chip and technology stocks.

Shares of Nvidia were last up 3.5% while Advanced Micro Devices (NASDAQ:AMD) was up 1.2% and Broadcom (NASDAQ:AVGO) was up 0.8% in after-hours trading.

"I believe I heard a collective sigh of relief across Wall Street as many investors and analysts were nervous about Nvidia and the entire tech center ahead of this announcement," said Michael Schulman, chief investment officer at Running Point Capital.

Also moving higher in late trading were shares of Super Micro Computer (NASDAQ:SMCI), up 2%; Dell Technologies (NYSE:DELL), up 1.5%; and Marvell (NASDAQ:MRVL) Technology, up 1.1%.

Nvidia late on Wednesday a ten-for-one forward stock split.

"The numbers are good, but (the stock) could trade lower tomorrow after investors truly digest these numbers," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.

© Reuters. FILE PHOTO: A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017.  REUTERS/Mike Blake/File Photo

Technology stocks have gained sharply since last year, led by Nvidia amid optimism over AI. At Wednesday's close, Nvidia's stock was up 91% for the year so far.

Nvidia's shares closed down 0.5% on the day at $949.50 ahead of its results.

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