Nasdaq Leads Wall Street Rally On Nvidia's Bumper Forecast

The tech-heavy Nasdaq led Wall Street gains on Thursday, May 25, 2023, as Nvidia shares soared on a blowout forecast that also lifted other AI-related companies, while investors watched for signs of progress in US debt ceiling talks, Shreyashi Sanyal and Shristi Achar A reported for Reuters.

Photo Insert: Shares of Nvidia Corp., the world's most valuable listed chip company, jumped 25.5% to hit a record high after it forecast quarterly revenue 50% higher than Wall Street estimates.

Shares of Nvidia Corp., the world's most valuable listed chip company, jumped 25.5% to hit a record high after it forecast quarterly revenue 50% higher than Wall Street estimates and said it was ramping up supply to meet demand for its artificial intelligence chips.

Heavyweight AI players such as Microsoft Corp. and Alphabet Inc. rose about 2.2% and 1.7%, respectively, while the Philadelphia SE Semiconductor index (.SOX) advanced 4.6% to its highest level in more than a year.

"The word of the month is AI," said Sam Stovall, chief investment strategist at CFRA Research in New York. "Investors are just looking for any area of growth and right now that happens to be semiconductors."

Other chip companies including Advanced Micro Devices Inc., Micron Technology Inc. and Broadcom Inc. rose between 2.6% and 9.5%. Dow Jones Industrial Average (.DJI) component Intel Corp., which has little AI exposure, fell 5.7%.

Wall Street's main indices have dropped sharply in the last two sessions and could log their worst week in more than two months as investors await clarity on whether lawmakers will strike a deal to raise the nation's $31.4 trillion debt ceiling or risk a calamitous default.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic