Nvidia’s Earnings Beat Powers Stocks Higher

  • Nvidia’s strong earnings beat on Wednesday sparked a market-wide rally. 
  • Major indexes climbed Thursday as trading kicked off.
  • Nvidia posted record revenue and shared bullish guidance for the months ahead. 

US stocks climbed as the opening bell rang Thursday, fueled by Nvidia’s strong earnings beat Wednesday after hours. 

The chip maker, led by CEO Jensen Huang, has emerged as the leader in the artificial intelligence boom, and now boasts a market capitalization of about $1.8 trillion. At the start of 2023, its value hovered at $350 billion.

The strong result powered the wider market higher Thursday, with the S&P 500 hitting a fresh record and the Nasdaq jumping more than 2%. 

Ahead of the company’s blowout earnings, Goldman Sachs strategists had called Nvidia the “most important stock in the world,” and Wedbush’s Dan Ives continues to deem Huang the “godfather of AI.”

Nvidia gave upbeat guidance for the year ahead and reported record revenue, coming in 265% higher than one year ago thanks to huge demand for its AI business. 

Shares of Nvidia climbed more than 10% in pre-market trading Thursday, and opened squarely in the green following Wednesday’s dip. 

Investors on Wednesday took in January’s Fed minutes release. FOMC participants suggested that the Federal Funds Rate was “likely at its peak” for this cycle, though they maintained that they needed to see more evidence still of cooling inflation. 

Meanwhile, weekly jobless claims came in lower than expected on Thursday at 201,000, compared to estimates of 216,000. 

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday: 

Here’s what else is going on: 

In commodities, bonds, and crypto: 

Read More: Nvidia’s Earnings Beat Powers Stocks Higher

2024-02-22 14:43:00

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