Nvidia's stock jumped almost 8% after its quarterly outlook exceeded analysts' estimates, along with its January-quarter revenue and profits.
Nvidia has been a top beneficiary of technology companies' race to build artificial intelligence into their products and services. This made the Santa Clara, California company's outlook a major test of whether Wall Street's AI-fueled rally is likely to continue or potentially reverse.
Following Nvidia's report, server component supplier Super Micro Computer (SMCI.O) jumped almost 6%, while Nvidia rival Advanced Micro Devices (AMD.O) rose 3%.
Broadcom (AVGO.O) and Marvell Technology (MRVL.O), two more chipmakers benefiting from the surge in AI computing, rose over 2% each in extended trade.
Arm Holding (O9Ty.F), added nearly 6%, now up more than 160% from the $51 price set in its initial public offering in September.
The company reported fourth-quarter revenue of $22.10 billion, beating estimates of $20.62 billion and adjusted EPS of $5.16 vs $4.64 expected by analysts. Net income surged 769% from a year ago to $12.285 billion.
Worries that Nvidia's quarterly report might not meet Wall Street's high expectations in recent days knocked its stock down almost 9% from record highs. Its late-day surge to $724 on Wednesday still leaves its short of its $739 record high close on Feb. 14.
Including Wednesday's after-hours gain, Nvidia's stock has climbed over 40% in 2024 after more than tripling last year. In recent sessions, Nvidia has jockeyed with Amazon.com (AMZN.O) and Alphabet (GOOGL.O) for a spot as Wall Street's third-most valuable company.
Nvidia has also recently replaced Tesla (TSLA.O) as Wall Street's most traded stock by value.
