TECH - 10+ Stocks ETFs To Ride On Nvidia's Record-Breaking Success | Benzinga
Shares of NVIDIA Corp (NASDAQ:NVDA) rose over 15% on Thursday after the company reported quarterly earnings that beat even the most optimistic forecasts.
As a provider of key technology needed to develop artificial intelligence (AI) platforms, the company is strategically positioned to benefit from the ongoing AI craze.
Jensen Huang, Nvidia's co-founder and chief executive, said during the late Wednesday call that "a whole new industry is being formed, and that's driving our growth."
Investors took these words seriously, taking much of the tech sector up.
While big tech companies like Meta Platforms Inc (NASDAQ:META), Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL), Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) compete to find the next groundbreaking stage in AI, companies that provide the infrastructure for those developments are the beneficiaries.
With quarterly revenues of $22.10 billion representing an increase of 265% year-over-year, Nvidia's growth was fueled by rising sales of AI infrastructure such as the H200 chip.
Analysts looking at Nvidia's performance overwhelmingly made mention of the growing market for generative AI as a motor behind the company's recent success, with several analysts raising the company's price target.
Nvidia's success in AI is pushing it close to the 2 trillion market cap, making it the third largest company by that measure. The company's $240 billion jump in market capitalization on Thursday accounts as the largest single-day jump in market history.
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