Nasdaq futures jumped approximately 2% Thursday morning following a strong earnings report from Nvidia, a leader in AI chip design. The company exceeded Q4 revenue expectations and projected Q1 revenue to triple, fueled by robust demand for its artificial intelligence chips.
In premarket activity, Nvidia shares skyrocketed 12.9%, poised to add over $200 billion to its market cap. The surge also provided a major boost to other AI stocks, with Advanced Micro Devices, Super Micro Computer, and Arm Holdings seeing gains of 5.5% to 14.1%.
The broader tech sector also benefited, as Big Tech and growth companies like Alphabet, Microsoft, Tesla, and Meta Platforms saw their stock prices climb from 1.0% to 2.4%.
Nvidia’s positive performance was a vital indicator of the AI-driven rally on Wall Street. Before earnings, analysts had warned that disappointing results could steeply hurt tech stocks. But Nvidia’s report has now set the stage for potential new highs soon.
Amid Nvidia’s success, investors hold positions while eyeing the Fed’s next moves. Many are betting on a rate cut as early as June after the release of meeting minutes revealed policymaker concerns about easing too soon.
