The S&P 500 surged Thursday to an all-time high after chip giant Nvidia reported much stronger-than-expected quarterly results, lifting the broader tech sector.
The broad market index traded 1.3% higher, hitting a record, while the Nasdaq Composite advanced 2%. The Dow Jones Industrial Average gained 237 points, or 0.6%. Those increases put the major averages on track to snap a three-day losing streak.
Nvidia popped more than 11% to an all-time high after the chip company said total revenue rose a whopping 265% from a year ago — driven by its booming artificial intelligence business. Nvidia, which has become one of the largest U.S. companies by market capitalization, also forecast another stellar revenue gain for the current quarter, even against elevated expectations for massive growth.
Other tech names were also higher. Meta and Amazon gained more than 2% each. Microsoft and Netflix advanced more than 1%.
AI enthusiasm has powered the jaw-dropping rally in Nvidia, along with other Big Tech names, over the past year. The chipmaker’s blowout quarter could further boost confidence in the space that has benefited the broader market.
“Bears tried to hit NVDA and sell the news, but there isn’t much to dislike in this report,” said David Russell, global head of market strategy at TradeStation. “There’s potentially a lot of growth ahead for this company with years of AI investment expected.”
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