Super Micro Computer shares increased over 11% following Nvidia’s earnings report, with Dutch chip equipment manufacturer ASML jumping up over 2.7% during after-hours trading in the United States. Rivals Advanced Micro Devices and Arm Holdings surged 4.08% and 7.87% respectively. Nvidia, known for custom designing AI chips for tech giants such as Amazon, Microsoft, and Google, experienced a skyrocketing demand for its graphics processing units due to the AI boom. Additionally, OpenAI’s ChatGPT, which garnered much attention for its human-like response generation, is trained on thousands of Nvidia GPUs.
Following the earnings call, Nvidia CEO Jensen Huang expressed optimism about the company’s growth conditions for 2025 and beyond, stating that the demand for Nvidia GPUs will continue to remain high due to generative AI and an industry-wide shift towards Nvidia accelerators. Gene Munster, managing partner of Deepwater Asset Management, also forecasted that Nvidia will surprise people with their market share and margins, expressing confidence in their future growth. Taiwanese semiconductor firms such as Orient Semiconductor Electronics and MediaTek also experienced increases in their share prices on Thursday, showcasing the impact of Nvidia’s performance on stock market trends.
In summary, Nvidia’s strong performance has had a positive ripple effect on other technology companies and semiconductor firms, leading to market share increases and optimism for future growth. The company’s association with high-profile AI projects such as ChatGPT positions it as a key player in the AI chip and processor industry, contributing to the optimistic outlook for the future. The continued demand for Nvidia GPUs, especially in the generative AI sector, is expected to drive the company’s growth for the next few years, as predicted by CEO Jensen Huang and market experts like Gene Munster.
