AI and semiconductor stocks surge after Nvidia's earnings beat

Artificial intelligence and semiconductor chip stocks rallied Thursday after U.S. chip design firm Nvidia beat Wall Street's expectations for fourth-quarter earnings and revenue on Wednesday and projected "continued growth" in 2025 and beyond.

Nvidia supplier Taiwan Semiconductor Manufacturing Company jumped more than 1% Thursday morning. TSMC is the world's largest contract chip maker and produces advanced processors for companies like Nvidia and iPhone maker Apple.

Shares of server component supplier Super Micro Computer rose more than 18%. Dutch chip equipment manufacturer ASML, which supplies TSMC lithography machines critical to chip making, jumped around 4%.

Following Nvidia's earnings report, rivals Advanced Micro Devices and SoftBank-backed U.K. chip designer Arm Holdings surged nearly 10% and more than 6%, respectively, Thursday morning.

Nvidia, which custom designs AI chips for the likes of Amazon, Microsoft and Google, saw skyrocketing demand for its graphics processing units thanks to the AI boom.

OpenAI's ChatGPT, which gained massive popularity worldwide in November 2022 for its ability to generate human-like responses to user prompts, is trained and run on thousands of Nvidia's GPUs. Nvidia shares popped more than 14% Thursday.

Intel, Broadcom and Qualcomm, three U.S. chip makers, also saw increases in share prices in extending trading after Nvidia's report Wednesday, surging 1.38%, 2.79% and 1.80% respectively.

"Fundamentally, the conditions are excellent for continued growth" in 2025 and beyond, Nvidia CEO Jensen Huang told analysts on Wednesday in an earnings call. He added that demand for Nvidia GPUs will remain high due to generative AI and an industry-wide shift away from central processors to the