The tech stocks roared back into the spotlight after Nvidia reported a blockbuster set of earnings that reassured investors worried about a potential bubble in AI-related stocks. Pre-market contracts show the Nasdaq 100 up around +1.6 %, the S&P 500 up ~1.2 % and the Dow Jones Industrial Average up ~0.5 % on Thursday morning.
With Nvidia’s earnings exceeding expectations and its outlook pointing to continued strong demand for AI and data-centre infrastructure, analysts are adjusting their tech models. Analysts from firms such as HSBC and Deutsche Bank note that the earnings performance gives the tech rally renewed legitimacy. For many investors, Nvidia’s performance is being interpreted as a validation for the broader sector, not just for chip makers but for AI software, cloud infrastructure and related tech.
Tech stocks holding up amid market jitters
While markets have been oscillating, thanks to inflation data, Fed commentary and growth concerns, the tech stocks are showing resilience. Nvidia’s stock surged more than 5% in after-hours trading following its Q3 results. In pre-market trade on Thursday, the stock had gained close to 5%. The strength of Nvidia has lifted spirits of other crypto-related stocks, with Coinbase, MicroStrategy, and Circle Internet Group as well, who have gained after initially closing lower.
Shares of Apple, Microsoft, Alphabet, Amazon, and Meta climbed in extended trading, boosting Big Tech overall. This renewed upmove among tech peers suggests investors are willing to pay for growth provided its backed by proved evidence. However, macro headwinds remain, and tech valuations will come under scrutiny.