Traders work on the floor at the New York Stock Exchange, November 4, 2019.
Brendan McDermid | Reuters
Stocks rose Thursday, boosted by a jump in Nvidia shares as the chip giant posted record revenue and issued upbeat guidance.
Nvidia popped more than 12%, hitting an all-time high, after the chip company said total revenue rose a whopping 265% from a year ago, driven by its booming artificial intelligence business. Nvidia, which has become the fifth-largest company in the U.S. by market capitalization, also forecast another stellar revenue gain for the current quarter, even against elevated expectations for massive growth.
AI enthusiasm has powered the jaw-dropping rally in Nvidia, along with other Big Tech names, over the past year. The chipmaker’s blowout quarter could further boost confidence in the space that has benefited the broader market.
“Bears tried to hit NVDA and sell the news, but there isn’t much to dislike in this report,” said David Russell, global head of market strategy at TradeStation. “There’s potentially a lot of growth ahead for this company with years of AI investment expected.”