Nvidia earnings impact: Shares of US chipmakers are set to hog the limelight in trade on Thursday, November 20, with the stocks of Advanced Micro Devices, Intel, Broadcom and Micron trading up to 4% higher in pre-open trade.
The common thread driving the surge is Nvidia’s spectacular earnings that not only appeased some concerns around a bubble in artificial intelligence (AI) stocks but also gave a leg-up to global tech stocks.
US chipmakers in focus: Nvidia earnings common link
US chipmakers Advanced Micro Devices and Intel rose about 5% and 2% respectively, while Arm Holdings, Micron Technology and Broadcom gained between 1% and 3%.
Nvidia’s shares itself were up 5.5% in pre-open trade, with the stock on track to add about $243 billion to its market cap, as per Reuters calculations.
“Nvidia has reported strong earnings, beating expectations on both revenue and EPS, and has also raised its revenue guidance for the next quarter. Since Nvidia is described as a bellwether for the broader AI ecosystem, its strong results signal continued solid demand in the AI and chip space,” said Ross Maxwell, Global Strategy Lead at VT Markets.
This positive outlook is likely to boost sentiment across related chipmakers, making chip stocks more likely to attract attention in today’s trade, Maxwell added.
Nvidia announced $57 billion in revenue, marking a 22% increase from the previous quarter and a substantial 62% year-over-year rise. Nvidia’s net income increased 65% in the quarter. It rose to $31.91 billion, up from $19.31 billion in the same period last year.
The company’s forecast for the fourth quarter is $65 billion in sales, surpassing analyst estimates of $62 billion, boosting sentiment.
Meanwhile, its CEO Jensen Huang dismissed bubble concerns, calling demand “incredible” and noting bookings extend into 2026.
Nvidia earnings: Sectoral impact
Nvidia’s earnings signal strength and stability for the broader AI and semiconductor sector, believe analysts.
Nvidia’s blow-out earnings underscore that the AI infrastructure wave is real and escalating, said Harshal Dasani, Business Head, INVAsset PMS. He added that this signals two things — First, the cadence of compute upgrades will accelerate and sustain chip-capex beyond near-term cycles; second, the bar for earnings execution is elevated across the industry.
Maxwell, too, opined that as a bellwether for the AI ecosystem, Nvidia’s performance suggests that demand for AI remains solid, supporting related stocks and sectors. However, he cautioned that not all AI companies will replicate Nvidia’s success and sentiment could reverse if future growth slows.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.