Nvidia ignites AI chip stock rally after ‘blow-out’ forecast

Nvidia Corp. results showing that customers are binging on chips used in artificial intelligence computing sent stocks tied to the burgeoning technology soaring globally.

Nvidia gained as much as 29% in late New York trading, while its rival Advanced Micro Devices Inc. jumped 10%. The outlook provided evidence that Nvidia is benefiting even more from the AI frenzy than thought possible, helping it weather a broader slowdown in technology spending.

Its suppliers are reaping rewards as well. Taiwan Semiconductor Manufacturing Co., which manufactures Nvidia’s chips, rose as much as 3.8% in Taipei. Equipment supplier Advantest Corp. surged 20% to an all-time high in Tokyo, while memory-chip maker SK Hynix Inc. advanced 6.8% in Seoul.