Nvidia's Earnings Ignite US Markets Rally as Tech Stocks Roar Back
US equities rallied sharply on Thursday as technology stocks led the charge. The Nasdaq Composite surged 1.5% to close at 27,052.15, while the S&P 500 rose 0.7% to 7,730.99 and the Dow Jones Industrial Average advanced 0.2% to 53,569.44.
Nvidia's exceptional quarterly performance sparked a powerful rebound in tech stocks. The company reported record fiscal second-quarter revenue, with data center revenue surging as demand for its AI chips continued to outpace supply. CEO Jensen Huang emphasized that the company's growth trajectory remains robust, stating that the only regret he has is that he didn't invest more and sooner in AI labs.
The acquisition of Hugging Face by Nvidia for $12.9 billion added to the positive sentiment. The deal signals Nvidia's commitment to expanding its AI ecosystem and deepening its presence in the rapidly growing AI development community. Software stocks also roared back, dispelling bearish narratives that AI would render their business models obsolete.
Salesforce soared 20% after beating expectations on the top and bottom lines and raising full-year guidance. CEO Marc Benioff stated that this is not the end of software, adding that the partnership with AI startup Anthropic is really the best of both worlds. CrowdStrike rose 18%, while Okta shares surged an extraordinary 28%.