A screen tracks Nvidia as a trader works on the floor at the New York Stock Exchange on Oct. 23, 2023.
Nvidia shares jumped 7% after it beat analyst expectations and forecast strong revenue growth. Notably, the chipmaker is projected to see revenue growth hit 70% in fiscal 2028, far higher than the 44% that analysts surveyed by LSEG expected. Its revenue for the fiscal second quarter more than doubled.
The tech-heavy index rose 1.1%, while the S&P 500 advanced 0.5%. The Dow Jones Industrial Average traded around the flatline.
The Nasdaq Composite was higher on Thursday as the latest earnings reports from Nvidia and other well-known technology companies boosted sentiment.
"We retain our conviction in the broader AI growth story and believe it remains a key driver of our positive market outlook," Global Wealth Management CIO Mark Haefele said in a Thursday morning note.
"While ongoing concerns over the sustainability of AI capex and the circularity of certain AI financing deals may continue to inject periodic tech volatility, the second-quarter earnings season has shown that the fundamentals remain robust," he added.
More broadly, shares linked to the semiconductor industry rallied, with Broadcom adding 2%, and SK Hynix and Arm up 1% and 5%, respectively. Intel shares also rose more than 1%, as did the VanEck Semiconductor ETF (SMH) .
Additionally, Salesforce rallied 13% after revenue came in ahead of Wall Street's forecast for the second quarter. Software stocks such as Adobe and Autodesk also climbed around 5% each.
Within cybersecurity specifically, Okta soared more than 20% and CrowdStrike gained 17% after surpassing analyst expectations and raising their outlooks as the companies see booming demand due to agentic AI. Other cyber stocks such as Palo Alto Networks rose alongside them. That stock in particular popped 11%.
Traders are readying for the Federal Reserve's annual symposium in Jackson Hole, Wyoming, where Fed Chairman Kevin Warsh is slated to deliver a keynote speech Friday.
