NEW YORK: The S&P 500 climbed to a fresh intraday record Thursday as investors digested Nvidia’s latest earnings report, which reinforced enthusiasm for artificial intelligence and lifted sentiment across the broader market.
The benchmark index rose 0.2%, while the tech-heavy Nasdaq Composite gained 0.5%. The Dow Jones Industrial Average hovered near the flatline.
Nvidia, which accounts for roughly 8% of the S&P 500, reported second-quarter revenue of $46.7 billion, up 56% year-over-year and slightly ahead of Wall Street expectations. Adjusted earnings came in at $1.05 per share, beating the $1.01 consensus forecast. However, revenue from its data center segment narrowly missed estimates, and its third-quarter guidance of $54 billion was only modestly above analysts’ expectations of $53.1 billion.
Shares of Nvidia initially dipped but recovered by the opening bell, trading nearly 1% lower by midday. Analysts noted the company’s guidance excluded potential sales of its H20 chips to China, leaving room for upside if regulatory hurdles are cleared.
“They didn’t include China in their guide, and some people were hoping there were some China sales in there,” said Ben Reitzes, head of technology research at Melius, on CNBC. “The core growth outside of China was really good. There should be more great growth in the fourth quarter.”
Wall Street firms including JPMorgan, Citi and Bernstein raised their price targets on Nvidia following the report, citing continued strength in AI infrastructure demand.
Other semiconductor stocks rallied in response. Broadcom rose nearly 3%, while Micron Technology advanced 4%, signaling investor confidence in the AI trade’s momentum. Snowflake surged 21% after posting better-than-expected quarterly results.
The market also shrugged off political uncertainty surrounding the Federal Reserve. Earlier this week, President Donald Trump told Fed Governor Lisa Cook she was dismissed, prompting Cook to file a legal challenge. A hearing is scheduled for Friday.
Economic data added to the upbeat tone. The Commerce Department reported second-quarter GDP grew at a 3.3% annualized rate, exceeding both initial estimates and forecasts.
Investors now turn their attention to Friday’s inflation report. Economists expect the personal consumption expenditures price index to show a 0.2% monthly increase and a 2.6% annual rise.