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Why Nvidia Shares Soar 6% on Friday
Shares of leading designer of graphics chips Nvidia jumped 6.2% in the afternoon session after markets rallied, with the Nasdaq up 2.1%, while the S&P rose 1.1%, following strong earnings from big tech companies including Microsoft and Alphabet. Notably, the earnings highlighted the strong demand for AI solutions, including cutting-edge AI chips that power most AI applications. These chips are developed by Nvidia and its peers.For example, during its Q1'2024 earnings call, Meta raised its forecasted operating expenses and capital expenditures for the full year. The increased costs are related to the company's AI infrastructure. It also released its AI assistant, Meta AI. This product was rolled out across its family of apps and is powered by Llama 3, an open-source large language model that is a ChatGPT competitor.
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