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Nvidia Clears the Way for AI Stocks to Keep Powering Higher

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Nvidia,Super Micro Computer Inc.,Artificial Intelligence

(Bloomberg) -- Nvidia Corp. just gave the green light to traders betting that the rally in artificial intelligence computing stocks — not to mention its own ...

-- Nvidia Corp. just gave the green light to traders betting that the rally in artificial intelligence computing stocks — not to mention its own — has room to run.Another estimate-thumping earnings report and forecast from the chipmaker sent its shares up more than 7% in postmarket trading, putting to rest lingering concerns that the spending spree on data-center gear over the past year might be due for a slowdown.

Helping to fuel Nvidia’s rally was its announcement of a 10-for-1 stock split that the company said was aimed at making shares more accessible to employees and investors. The split would be Nvidia’s second in the past three years, with the stock climbing more than 500% since the last one was announced in May 2021.

The results provided further evidence to Michael Sansoterra, chief investment officer at Silvant Capital Management, that the AI rally will continue.

 

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