Nvidia shares jumped 6.3% in premarket trading, after the chip giant's robust forecast illustrated relentless demand for AI computing, even as it warned that shortages of memory components could curb the pace of the industry's growth.
The report met lofty investor expectations and added fuel to the tech rally, underscoring that companies at the heart of AI buildout continue to deliver impressive growth.
"The market rewarded the demand outlook. Nvidia has made quarterly beats routine," said Matthew Tuttle, CEO of Tuttle Capital Management.
He, however, cautioned that "a company can beat the quarter, raise the outlook, and still leave investors asking harder questions than the ones it just answered."
U.S. chipmakers Micron Technology and Marvell Technology advanced about 4% each. Data storage firms Sandisk and Western Digital gained slightly more than 4% each.
Salesforce surged 10.5% after raising annual revenue and profit forecasts, and rolling out a new plug-in integrated with Anthropic's Claude AI models.
CrowdStrike climbed 9.4% after the cybersecurity software provider raised its annual revenue forecast and topped second-quarter earnings estimate.
Both these reports calmed worries that advanced AI tools could upend the traditional software industry, boosting investor appetite for beaten-down software stocks and narrowing the gap with semiconductors, which are seen as the primary beneficiaries of the AI boom.
Other software firms also gained. ServiceNow added 2.5% and Palo Alto Networks gained 5%.
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