AI-related stocks rally as Nvidia outlook brings relief

Shares of Nvidia jumped over 5% in extended trading, helping lift other AI-related stocks

Shares of companies across the artificial intelligence landscape rose Thursday after Nvidia Corp. reported results that eased concerns about the durability of the AI boom.

The chipmaker at the heart of the AI trade gave a strong revenue forecast, a sign that demand for its products remains healthy. Investors have been fretting that the massive spending on semiconductors and other AI equipment isn’t sustainable.

“Nvidia’s results reinforce that AI infrastructure spending still has momentum and remains a core exposure for investors despite the sector’s outperformance,” said Gary Tan, a portfolio manager at Allspring Global Investments. “The print adds visibility for those assessing whether to carry AI infrastructure exposure into next year.”

Shares of Nvidia jumped over 5% in extended trading, helping lift other AI-related stocks. Japan’s blue-chip gauge Nikkei 225 advanced as much as 4.2%, with Nvidia chip gear suppliers Tokyo Electron Ltd., Advantest Corp., and Lasertec Corp. all surging at least 6%. Contracts for the S&P 500 rose 1.2% and those for the Nasdaq 100 jumped 1.7%.

“The uplift in forward guidance gives the market a much firmer anchor for 2025,” which helps support broader equity markets during a period of shifting rate expectations, said Billy Leung, investment strategist at Global X Management. “It should help steady risk sentiment after the recent pullback, particularly in markets that had seen heavy de-risking like Korea and Taiwan.”

Nvidia’s chipmaker peers Broadcom Inc., Advanced Micro Devices Inc. and Micron Technology Inc. rose in after-hours trading, along with US-listed shares of Taiwan Semiconductor Manufacturing Co. South Korea’s memory chipmakers SK Hynix Inc. climbed as much as 6.8% Thursday, while Samsung Electronics Co. rose as much as 3.5%.