Global chipmakers rally after Nvidia posts strong quarterly results

Investing.com -- Shares in chipmakers and artificial intelligence-related companies rose on Thursday after Nvidia (NASDAQ: NVDA) posted quarterly results that trounced Wall Street expectations.

In Asia, Taiwan Semiconductor Manufacturing Company (TW:2330), the continent's biggest semiconductor group and a key supplier to Nvidia, jumped by 2.0%, while its U.S. listing moved up by over 3% in premarket dealmaking. South Korea's SK Hynix Inc (KS:000660), which provides Nvidia with memory chips, also climbed by 4.2%.

The rally was later extended in Europe, where BE Semiconductor Industries (AS: BESI), ASML Holding NV (AS: ASML), and Aixtron SE (ETR:AIXGn) also increased.

Meanwhile, Nvidia's (F: NVDA) Frankfurt listing surged in midday trading, mirroring a premarket spike in the stock in New York.

Nvidia's second-quarter revenues crushed already sky-high Wall Street estimates, as the maker of graphics processors crucial to generative AI applications was boosted by the intensifying frenzy over the nascent technology.

Heading into the earnings, some sources were reportedly calling for sales of $12 billion in the three months ended on July 30 and forecasts of $14B in revenue in the third quarter.

In the event, revenue came in at $13.5B during the second quarter, more than doubling the prior mark of $6.7B. Nvidia also projected that sales in the current quarter, set to finish in October, would come in at $16B. In a statement, Chief Executive Officer Jensen Huang hailed the dawn of a "new computing era."

"Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Huang said.

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