Nasdaq leads Wall Street rally after Nvidia’s forecast

May 25 (Reuters) – The Nasdaq surges on Thursday, leading Wall Street to gain after Nvidia’s rise also boosted shares of other AI-related companies. At the same time, investors are watching for signs of progress in the US debt ceiling talks.

The Dow Jones fell 0.23% to 32,725.54 at 5:30 p.m. GMT, while the S&P 500 rose 0.51% to 4,136.4 points and the Nasdaq jumped 1.17% to 12,632.22 points.

Shares of Nvidia Corp, the world’s most valuable chip maker, surged 25.7% to a record high after the company forecast second-quarter revenue more than 50% above Wall Street estimates and said it was increasing shipments to meet growing demand to the artificial intelligence chips that are used to run ChatGPT and many similar services.

AI heavyweights such as Microsoft Corp and Alphabet Inc rose 2.6% and 1.3%, respectively.

“The word of the month is AI,” said Sam Stovall of CFRA Research. “Investors are looking for any area of ​​growth, and right now it’s semiconductors.”

Other semiconductor stocks including Advanced Micro Devices Inc, Micron Technology Inc and Broadcom Inc were up 1.7%-9.8%.

Wall Street’s major indexes have been down for the past two consecutive sessions and could be their worst week in more than two months as investors await clarification on the $31.4 trillion debt ceiling.

Later today, the White House and Congressional Republicans will resume talks to reach an agreement to raise the cap to avoid a catastrophic default.

Ralph Lauren Corp shares rose 7.4% after posting better-than-expected earnings.

The original message in English is available under the code:

(Sreyasha Sanyal and Shristi Achar A in Bangalore)