Nvidia profits jump to $12.3 billion on strong demand for AI technology

Excitement over Nvidia and artificial intelligence sparks broader rally in tech stocks

New York:

Global stocks rose on Thursday as investors cheered bumper profits from U.S. chip giant Nvidia, which is seen as a leader in artificial intelligence and has posted declining records in Asia, Europe and North America.

Nvidia reported quarterly profits soared to $12.3 billion and its revenue hit a record high. Demand for the company’s artificial intelligence technology pushed the company’s stock price soaring 16.4%, and its market value rose to nearly $2 trillion.

The Nasdaq rose 3%, while the Dow and S&P 500 both hit new highs. The blue-chip index closed above 39,000 points for the first time.

“Nvidia is showing that AI is here to stay,” said Adam Sarhan of 50 Park Investments. “This is the tipping point where AI will become mainstream and get mass adoption, which is going to be very optimistic.”

Excitement over Nvidia and artificial intelligence triggered a broader rally in technology stocks, pushing Japan’s Nikkei 225 index up 2.2% to close at a record high of 39,098.68 points, breaking its all-time high dating back to 1989.

After an economic downturn in the so-called “lost decades” and the financial crisis of 2008-2009, Japanese stocks began to rebound around 2013 and have gained momentum in recent months.

“The much-anticipated Nvidia earnings report, which many considered to be the investment event of the year or decade, did not appear to disappoint,” said Stephen Innes, managing partner at SPI Asset Management.

Euro zone indexes also rose on Thursday as investors awaited minutes from the European Central Bank’s latest interest rate meeting, which saw new records set in Frankfurt and Paris.

A survey ahead of the release showed that euro zone business activity fell for a ninth consecutive month, but the decline slowed further.

Separate UK Purchasing Managers’ Index (PMI) data reinforced belief that the UK economy may have emerged from recession. Official data this month showed the economy shrank in the second half of last year due to high inflationary pressures.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)