Nvidia rises nearly 10%, its best day in over a year
WHAT HAPPENED
Nvidia rose nearly 10%, its best day in over a year, after reporting sales of $96.22 billion, 106% more than a year ago. The company expects to grow another 70% next fiscal year.
WHY IT MATTERS
Most of its sales, $89 billion, came from chips for artificial intelligence data centers. The result suggests that companies are still spending heavily on AI, despite fears of a bubble.
AND FOR YOUR PORTFOLIO
Nvidia has significant weight in stock indices like the S&P 500. Therefore, the rise may have boosted funds, retirement accounts, and pension plans that track those indices, even if the person does not own Nvidia stock directly.
💬 TELL IT LIKE THIS
“Nvidia's jump was a sign that, for now, demand for artificial intelligence chips continues to grow.”