Nvidia Ignites AI-Related Stock Rally After ‘Blow-Out’ Forecast

(Bloomberg) — Nvidia Corp. results showing that customers are binging on chips used in artificial intelligence computing sent a complex of stocks tied to the burgeoning technology soaring.

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An exchange-traded fund that tracks semiconductor makers jumped more than 3% in postmarket trading on Wednesday, with Nvidia rival Advanced Micro Devices Inc. advancing 10%. Taiwan Semiconductor Manufacturing Co., which produces Nvidia’s chips, is up 8%.

Investors were looking to Nvidia for evidence that the surge in interest in artificial intelligence this year is resulting in higher sales of chips that provide the computing power. The semiconductor maker delivered that and more with a revenue forecast for the current quarter that dwarfed the average analyst estimate.

Read more: Nvidia Soars After AI-Fueled Forecast Shatters Expectations

Nvidia “provided blow-out guidance, powerfully underscoring the bull thesis that this company sits at the heart of one of tech’s seminal transition points,” said Adam Crisafulli, founder of newsletter Vital Knowledge.

Beyond semiconductor makers, Microsoft Corp. and Google parent Alphabet Inc. each rose about 2%. The tech giants have rallied this year as they incorporate AI tools into their products. Other gainers include software makers C3.ai Inc. and Palantir Technologies Inc., each rising more than 6%.

Nvidia gained as much as 29% in late trading on Wednesday. If the gains hold, the stock would surpass its previous record high.

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