Nvidia's results spark nearly $300 billion rally in AI stocks

Stocks related to artificial intelligence surged in extended trade on Wednesday, adding almost $300 billion in market capitalization after chipmaker $NVIDIA(NVDA.US)$ forecast strong revenue growth and said it was boosting production of its AI chips to meet surging demand.
Nvidia's stock zoomed as much as 28% after the bell to trade at $391.50, its highest level ever. That increased its stock market value by about $200 billion to over $960 billion, extending the Silicon Valley company's lead as the world's most valuable chipmaker and Wall Street's fifth-most valuable company.

Rival chipmaker $Advanced Micro Devices(AMD.US)$ jumped 10%. $Microsoft(MSFT.US)$ and $Alphabet-A(GOOGL.US)$ ,which are both rushing to incorporate generative AI into their Web search platforms, each rose about 2%.

AI software maker $C3.ai(AI.US)$ and $Petratherm Ltd(PTR.AU)$ , which recently launched its own AI platform, both soared about 8%.

Ahead of Nvidia's report on Wednesday, optimism around AI had already fueled a 109% surge in its stock so far in 2023, making the chipmaker the $S&P 500 Index(.SPX.US)$ 's top performer year-to- date. That rally left Nvidia trading at about 60 times expected earnings, approaching its peak of 68 times expected earnings in 2021, according to Refinitiv data.