Nasdaq rises as Nvidia stock jumps on revenue forecast

Nvidia's stock surged approximately 7% on Thursday following a significant increase in second-quarter revenue and an optimistic forecast of 70% growth for its fiscal 2028 year. The rise in Nvidia's stock lifted chip stocks and contributed to an overall increase in major indexes, with the Nasdaq Composite up 0.8%, the S&P 500 up 0.4%, and the Dow Jones Industrial Average up about 35 points or 0.1%.

Other chip stocks also experienced gains, with Broadcom and Marvell Technology both rising by 2%. SK Hynix and Arm also saw positive movements, gaining roughly 4%. Salesforce stock skyrocketed 13% after surpassing revenue expectations for the quarter, while Okta surged more than 20% following reports of surging demand driven by agentic AI.

UBS Global Wealth Management's Chief Investment Officer, Mark Haefele, and his team expressed confidence in the broader AI growth story, stating that it remains a crucial driver of their positive outlook for the market. However, they acknowledged that concerns over the sustainability of AI capex and the viability of certain AI financing deals might continue to cause periodic volatility in the tech sector. Despite these concerns, the team emphasized that the fundamentals of the AI sector remain robust, according to CNBC.

On Wednesday, the three major indexes closed slightly unchanged as traders remained vigilant, keeping a close eye on the Federal Reserve's annual Jackson Hole, Wyoming symposium, which commenced on Thursday, as reported by CNBC.