Shares in the chip maker Nvidia soared more than 24 percent on Thursday, after the company delivered a knockout quarterly sales outlook powered by demand for the processors that run artificial intelligence systems.
“We’re seeing incredible orders to retool the world’s data centers,” Jensen Huang, Nvidia’s chief executive, told analysts Wednesday on a conference call.
Nvidia’s chips are used to power A.I. systems; demand for the chips jumped during the boom in cryptocurrency, whose systems also rely on their processing power. At the close of trading on Wednesday, Nvidia’s market capitalization hit $755 billion, the fifth-highest public valuation in the United States. On Thursday, the company closed in on the trillion-dollar club, at $939 billion.
The A.I. rally has also lifted other chip stocks, including those for AMD, ASML and Taiwan Semiconductor Manufacturing Company. Since the introduction of the ChatGPT chatbot in November, the buzz around A.I. has intensified, making companies at the forefront of the technology, like Microsoft, Google and Nvidia, a popular pick among investors.