Nvidia ignites chip stock rally as forecast shows AI boom is intact

Nvidia shares jumped 6.8 percent after forecasting a 70 percent jump in next fiscal year's revenue and beating second-quarter revenue and profit expectations, putting it on track to add about 295.7 billion dollars in market value. The rally lifted other AI-linked chip stocks including Intel, Micron, Broadcom, and SK Hynix by between 1.3 and 3.5 percent in a roughly 150 billion dollars sector-wide move. At least 16 brokerages raised price targets on Nvidia, citing strong demand for its next-generation Rubin AI processors.