AI-darling Nvidia's bumper results push S&P 500 to record high
By Amruta Khandekar and Bansari Mayur Kamdar
(Reuters) — The benchmark S&P 500 index briefly hit a fresh record on Thursday after Nvidia (NASDAQ:NVDA)'s stellar results and forecast spurred the artificial intelligence-led rally this year.
Nvidia's shares surged 12.9% after the chip designer forecast a roughly three-fold surge in first-quarter revenue on strong demand for its AI chips.
The company, which also beat expectations for fourth-quarter revenue, could add more than $200 billion in market capitalization, if gains hold.
At 09:42 a.m. ET, the benchmark S&P 500 was up 1.31% at 5,047.07, after hitting intraday record high of 5051.37 earlier in the session.
Eight of the 11 major S&P 500 sectors rose in early trading, with technology stocks leading gains with a 3.8% jump.
The Dow Jones Industrial Average was up 226.78 points, or 0.59%, at 38,839.0, and the tech-heavy Nasdaq Composite was up 332.50 points, or 2.13%, at 15,913.37.
Shares of other companies, seen as beneficiaries of the AI boost, also got a shot in the arm. Nvidia's rival Advanced Micro Devices (NASDAQ:AMD), server component supplier Super Micro Computer (NASDAQ:SMCI) and Arm Holdings (NASDAQ:ARM) jumped between 6.9% and 16.8%.
The Philadelphia Semiconductor index climbed 4%.
Big Tech and growth stocks such as Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) rose between 0.8% and 2.4%.
Nvidia's earnings were a major test for the AI-fueled rally on Wall Street that pushed the S&P 500 beyond the 5,000 point mark earlier this month. Some analysts had cautioned that disappointing results could spark a steep selloff among technology stocks.
«Investors are embracing Nvidia especially, but continue to embrace AI. In the short
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