Nvidia surges on AI boom, setting off rally on Wall Street

NEW YORK

Nvidia’s stock price surged Thursday after delivering another blowout quarter, setting off a rally that lifted other technology companies and carried Wall Street to another record high.

The chipmaker, a central player in the boom surrounding artificial intelligence, reported scorching demand for its semiconductors.

The S&P 500 rose 105.23 points (2.1%) to 5,087.03, an all-time high. The Nasdaq 460.75 (3%) to 16,041.62.

The Dow Jones Industrial Average, which has a smaller weighting in tech stocks, jumped 456.87 (1.2%) to 39,069.11. That marks its first close above 39,000.

The Russell 2000 rose 19.09 (1%) to 2,013.84.

Nvidia soared 16.4%, leading the gains for tech companies and the market.

Its stock has tripled over the past year thanks to a surge in investor enthusiasm for artificial intelligence. Synopsis, which makes software used to test and develop chips, rose 6.9% after raising its profit forecast.

Other chipmakers and companies involved in the chipmaking industry also gained ground. Advanced Micro Devices rose 10.7%, and Lam Research added 4.7%.

Technology stocks have been the driving force behind the market rally that started in October. Solid earnings from some of the biggest names in the sector are helping justify and reinforce those gains.

“Investors are still wondering, will the market top out or broaden out,” said Sam Stovall, chief investment strategist at CFRA. “As of now, investors are basically saying I’m going to let this market take me where it wants to go, and right now that’s higher.”