Chip Stocks Are Rallying Today: What's Driving The Action?

Several chip stocks including Advanced Micro Devices Inc AMD, Micron Technology Inc MU and Taiwan Semiconductor Manufacturing Co TSM are trading higher Thursday in the wake of NVIDIA Corp's NVDA first-quarter results. 

What Happened: Nvidia reported better-than-expected revenue and earnings results after the bell on Wednesday.

The chipmaker also guided for second-quarter revenue of $11 billion, plus or minus 2%, which was well above even the highest analyst forecasts. The consensus estimate for Nvidia's top-line number next quarter was just $7.15 billion.

"A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process," said Jensen Huang, founder and CEO of Nvidia.

"Our entire data center family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them."

The positive commentary surrounding outsized demand for multiple Nvidia chips is driving several semiconductor names higher Thursday morning.

See Also: Nvidia Gets A New Street-High Price Target After Blowout Quarter

AMD, MU, TSM Price Action: AMD was up 8.74%, Micron was up 4.01% and TSM was up 6.71% at the time of publication, according to Benzinga Pro.

Photo: brookhaven from Pixabay.