Tech stocks are off to a strong start on Thursday after Nvidia’s earnings reignited a rally in the sector.
Nasdaq 100 futures rose 1% early Thursday after falling 0.2% in premarket trading after the technology-heavy Nasdaq Composite Index closed at an all-time high on Tuesday.
Nvidia’s impressive performance and guidance have sparked renewed optimism…
Tech stocks were poised to get off to a strong start on Thursday thanks to Nvidia’s strength.
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Strong performance has reinvigorated the sector’s rally.
Nasdaq 100 futures rose 1% early Thursday, led by tech stocks.
Nasdaq Composite
The index closed at a record high on Tuesday, but was down 0.2% in the previous session.
Nvidia
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The stellar results and guidance have sparked renewed optimism across the tech industry, and the Nasdaq may well hit a new record by the close on Thursday. Shares of the AI chipmaker rose 7.1% in premarket trading, surpassing $1,000.
Other semiconductor stocks also rose, with Advanced Micro Devices rising 3%, Micron Technology rising 3.9%, Applied Materials gaining 2.5% and Qualcomm Inc. rising 1.3%.
Taiwan Semiconductor Manufacturing Co. (TSMC) provided further reason for rejoicing by slightly but positively revising its outlook for the global semiconductor industry. The company currently expects annual sales growth for the semiconductor industry to be 10%. The company changed its forecast from April’s “over 10%” to “around 10%.” The company’s American Depositary Receipts (ADRs) rose 2.5% in premarket trading.
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AI-related stocks, such as super microcomputers, were among the stocks with the largest price movements in pre-market trading.
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Nvidia Inc. rose 5.1%. The company makes AI servers using Nvidia chips. AI software provider C3.ai rose 2.8%, while Palantir Technologies Inc. rose 1.5%.
While Nvidia was in the spotlight late Wednesday, Snowflake also impressed investors with its earnings report. Cloud computing company Snowflake brightened its outlook for the second quarter, expecting product revenue to be between $805 million and $810 million. This is higher than Wall Street’s estimate of $793 million. The company’s stock rose 3.9% early Thursday.
Email Callum Keown at callum.keown@barrons.com.
