Nvidia's Blockbuster Earnings Boost Chip Stocks

Nvidia's blockbuster earnings have boosted demand for chip stocks across the board. The tech giant's revenue more than doubled to $96.2 billion in the May-July quarter, while adjusted profit came in at $2.22 per share.

The results instilled much-needed confidence among investors and helped ease concerns surrounding the sustainability of the artificial intelligence-driven rally. Futures tied to the tech-heavy Nasdaq rose 1%, while S&P 500 futures advanced 0.4%. However, Dow Jones Industrial Average futures were marginally lower.

Nvidia's peers, including Advanced Micro Devices, Arm Holdings, Qualcomm, Micron Technology, and Intel, also rallied sharply in pre-market trading, with gains of up to 4%.