Nvidia's strong forecast lifts shares of AI chipmakers

FILE PHOTO: NVIDIA logo shown at SIGGRAPH 2017

By Caroline Valetkevitch

NEW YORK (Reuters) - A stronger-than-expected revenue forecast from Nvidia after the bell on Wednesday lifted shares of the artificial-intelligence chipmaker and fueled gains in other chip and technology stocks.

Shares of Nvidia were last up 3.5% while Advanced Micro Devices was up 1.2% and Broadcom was up 0.8% in after-hours trading.

"I believe I heard a collective sigh of relief across Wall Street as many investors and analysts were nervous about Nvidia and the entire tech center ahead of this announcement," said Michael Schulman, chief investment officer at Running Point Capital.

Also moving higher in late trading were shares of Super Micro Computer, up 2%; Dell Technologies, up 1.5%; and Marvell Technology, up 1.1%.

Nvidia late on Wednesday a ten-for-one forward stock split.

"The numbers are good, but (the stock) could trade lower tomorrow after investors truly digest these numbers," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.

Technology stocks have gained sharply since last year, led by Nvidia amid optimism over AI. At Wednesday's close, Nvidia's stock was up 91% for the year so far.

Nvidia's shares closed down 0.5% on the day at $949.50 ahead of its results.

(Reporting by Caroline Valetkevitch in New York; Additional reporting by Arsheeya Bajwa in Bengaluru; Editing by Matthew Lewis)