Nvidia Shares Rise As AI Boom Lifts Revenue Forecast
Nvidia shares surged before the bell on Tuesday, as anticipation grew for the chip designer’s quarterly results, which have benefited the most from the artificial intelligence boom.
Expectations that Nvidia’s revenue target would again outperform Wall Street forecasts have fueled a 16.5% spike in shares during the previous week.
They surged 8% on Monday, lifting broader markets, and finished only 2.1% off their all-time high of $480.88 set on July 14.
Wall Street predicts that Nvidia, a leader in the market for chips used to power generative AI, will report a 110% growth in third-quarter revenue to $12.50 billion. The company’s earnings call on Wednesday will be a test for AI demand and market rally. In May, Nvidia forecasted a 50% increase in second-quarter revenue, pushing its market capitalization above $1 trillion. This forecast sparked a rally in AI-stocks and Big Tech, making it a key driver for the U.S. stock rally this year.
(With inputs from Shikha Singh)
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