Stocks rise as Nvidia starts tech rally

Stocks on Wall Street posted their biggest gain in more than a year on Thursday, a day after Nvidia, which has become an emblem of the growth potential offered by artificial intelligence, reported record profits.

The S&P 500 rose 2.1 percent, its best single-day performance since January 2023. The Nasdaq Composite index, packed with tech stocks like Nvidia, rose 3 percent, also the biggest single-day jump in more than a year.

After markets closed on Wednesday, Nvidia, which designs microchips used in the development of artificial intelligence, reported record revenue of more than $22 billion for the last three months of 2023. These figures exceeded analyst expectations and fueled a global stock rally .

Japan’s Nikkei 225 index rose to a new high, breaking the previous peak reached in early 1990. Stock markets in China, Germany, France and Britain all ended the day higher.

Nvidia’s surprising financial performance confirmed a rapid growth period for the company, which benefited from the emerging exuberance about AI. Revenues increased by more than 250 percent compared to the same period in 2022.

The company rose about 16 percent on Thursday, making it the best-performing stock in the S&P 500. Over the past twelve months, its share price has risen 275 percent, increasing its market value to approximately $1.5 trillion and making it one of the most profitable stocks. highly regarded companies in the world.

That size also means the company has a major impact on the indexes it is part of, with Nvidia’s share price rise on Thursday responsible for almost a third of the S&P’s rise.

Other chip makers also enjoyed a sharp rise in their stock prices, with Advanced Micro Devices up about 11 percent and Applied Materials up 5 percent.