Nvidia Quells AI Fears; Rival Chipmakers Rally; Cloud Computing Receives Boost

On this episode of Stock Movers:
- Nvidia (NVDA) rallied in the premarket session after the company delivered a surprisingly strong revenue forecast and pushed back on the idea that the AI industry is in a bubble, easing concerns that had spread across the tech sector. The world’s most valuable company expects sales of about $65 billion in the January quarter — roughly $3 billion more than analysts predicted. Nvidia also said that a half-trillion-dollar revenue bonanza due in coming quarters may be even bigger than anticipated. The outlook signals that demand remains robust for Nvidia’s artificial intelligence accelerators, the pricey and powerful chips used to develop AI models. Nvidia had faced growing fears in recent weeks that the runaway spending on such equipment wasn’t sustainable.
- Shares of rival chipmakers Advanced Micro Devices (AMD), Broadcom (AVGO), and Intel (INTC) all received an Nvidia-fueled boost in early trading. Nvidia's suppliers jumped in Japan, South Korea and Taiwan, lifting benchmarks there. Nvidia’s better-than-expected earnings and outlook, coupled with the momentum that Korean semiconductor exports displayed earlier this month, prime tech shares to extend their immediate rebound because investors are likely to get drawn back in.
- Cloud computing providers Coreweave (CRWV) and Oracle (ORCL) also found themselves as beneficiaries of Nvidia's earnings beat. Thursday's earnings reassured investors on artificial intelligence demand, even as questions linger over the rebound’s durability, stretched valuations and the Federal Reserve’s policy path.

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