New York:Nvidia shares experienced a significant rebound, rising more than 5% in premarket trading on Wednesday. This surge comes as part of a broader increase in semiconductor and artificial intelligence (AI) stocks, with investors closely monitoring an investigation involving CEO Jensen Huang ahead of the company's upcoming earnings release.
According to Anadolu Agency – English, the US chipmaker's shares were trading at $177.35, an increase of 5.05% as of 1025GMT, following a previous close of $168.89 on Tuesday. This recovery comes after a decline of 5.47% on Tuesday and a 4.3% drop on Monday. Other companies in the chip sector also saw gains, with AMD rising 5.2%, Intel gaining 5%, Qualcomm climbing 2.9%, Broadcom adding 4%, and Micron Technology increasing 6.7%. AI cloud provider CoreWeave notably jumped 10.6% after releasing its quarterly results.
Nvidia's board members announced on Tuesday that they had engaged Joon H. Kim, a former acting US Attorney for the Southern District of New York, along with the law firm Wachtell, Lipton, Rosen and Katz, to conduct an independent investigation. This follows reports of a foreign intelligence effort targeting CEO Jensen Huang. The board emphasized that there is no indication of any compromise to national security or company secrets but assured a thorough examination of all available information. They also expressed confidence in Huang's leadership, noting his support and cooperation with the review.
Nvidia is set to release its fiscal third-quarter results on November 17, which will provide insights into the demand for its AI chips. Meanwhile, CoreWeave reported impressive third-quarter revenue figures of $3.66 billion, marking an approximate 168% increase from the previous year's $1.37 billion. The company has revised its full-year revenue outlook to between $13 billion and $13.3 billion and adjusted its operating income forecast to between $1.275 billion and $1.375 billion. Additionally, CoreWeave increased the lower end of its annual capital expenditure forecast, planning to spend between $37 billion and $39 billion as it aims to accelerate infrastructure deployment and capacity delivery to its customers.