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May 29 - Nvidia (NASDAQ:NVDA) shares surged more than 6% in Thursday's premarket trading after the company posted better-than-expected quarterly earnings and revenue.
The strong results helped trigger a broad rally across global semiconductor stocks, despite the chipmaker disclosing a $4.5 billion write-down related to unsellable H20 chip inventory amid U.S. export restrictions to China. The company also estimated $2.5 billion in lost revenue tied to the curbs.
Seen by investors as a key gauge of demand in the semiconductor and artificial intelligence sectors, Nvidia's upbeat report helped lift chipmakers across regions. In Asia, Tokyo Electron ended up more than 4%, while SK Hynix, a supplier of high-bandwidth memory to Nvidia, rose nearly 2%.
European names including ASM International, BE Semiconductor Industries, and ASML (NASDAQ:ASML) also traded higher.
In the U.S., Marvell Technology (NASDAQ:MRVL) gained as much as 7% in early trade, while Qualcomm (NASDAQ:QCOM) also edged up.
While regulatory pressure on exports to China persists, Nvidia's results reassured markets that AI-related chip demand remains robust, easing concerns about near-term slowdown across the sector.
This article first appeared on GuruFocus.