Topline
U.S. stock futures surged in premarket trading early on Thursday, led by a big bump in Nvidia’s stock, as the chipmaker’s earnings blew past analysts’ forecasts and curbed fears of an artificial intelligence-led bubble that had weighed on the market in the past few weeks.
Nvidia President and CEO Jensen Huang delivers the keynote address during the Nvidia GTC (GPU Technology Conference).
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Key Facts
Buoyed by its blowout earnings report, Nvidia’s shares rose to $195.20 in premarket trading early on Thursday, up more than 4.6% from Wednesday’s market close.
Key futures indexes were also up, with the benchmark S&P 500 futures rising 1.15% to 6,738.25 points, while Dow Futures went up 0.56% to 46,469 points.
The tech-centric Nasdaq futures index posted the largest gain, rising 1.5% to 25,090.75 points.
Nvidia’s strong earnings also boosted its chipmaker rivals, with AMD, Broadcom and Intel’s shares rising 4.1%, 3% and 1.8% respectively.
What Do We Know About Nvidia’s Earnings?
Nvidia reported $57 billion in revenue in its third-quarter earnings report on Wednesday evening, comfortably beating analyst estimates of $54.9 billion, according to FactSet data. A lion’s share of the company’s revenue, $51.2 billion, came from data center sales as companies push to scale up their AI infrastructure using Nvidia’s advanced AI chips. The company’s revenue was up 22% from its second quarter and 62% year-over-year.