Wall Street Jumps for Joy at Nvidia Forecast
Get caught up.
Did we doubt you? So sorry. This was Wall Street late Wednesday afternoon addressing the artificial intelligence frenzy that’s been driving investors nuts. The apology came in the form of an after-market rally as shares of the world’s largest tech companies climbed on speculation Nvidia’s blockbuster outlook will reignite a tech-driven surge that, until recently, had been fueling near-regular records.
Nvidia shares spiked about 5% after the giant chipmaker, seen as a barometer for AI technology, gave a strong revenue forecast for the current period. The news may help counter concern that a global rise in AI spending is poised to pop in calamitous fashion. Worries over everything from the durability of the AI trade to the Federal Reserve’s policy path have contributed to a recent equity rout. With investors increasingly skeptical of tech spending, how Nvidia’s results are interpreted will be key. Tune in tomorrow.