DIGIVESTASI - Wall Street stocks in the United States rallied as semiconductor stocks gained as demand for chips increased.  At market open Thursday (May 23, 2024), the Dow Jones opened 0.06% higher at 39,694.95, while the S&P 500 opened 0.61% higher at 5,339.53 and the Nasdaq opened at 1.16. %. .at 16,996.38.  

In early trading, Nvidia (NVDA) shares were up almost 9%, semiconductor stock Qualcom (QCOM) was also up more than 1%, followed by Taiwan Semiconductor (TSM) up 1% and Advanced Micro Devices Inc. (AMD) also up 1%. 

Nvidia experienced the highest price increase compared to other semiconductor stocks. Nvidia's strong earnings forecast boosted investor confidence in a surge in demand for AI-driven chips, pushing stocks in the semiconductor sector higher. 
 

Expectations were high for Nvidia stock as shares were trading near record highs. The results also capped off a strong quarter for US tech giants including Microsoft, where AI is a key growth driver in the semiconductor industry.  

Nvidia also announced a 10-to-1 stock split on Wednesday and increased its quarterly dividend by 150%, as demand continues to outpace supply of high-end chips that support almost all AI applications, including OpenAI's ChatGPT.  

In addition, Nvidia executives said their new Blackwell AI chips will begin shipping this quarter and demand for these processors could outstrip supply “well into next year.” 

Chief Executive Officer Jensen Huang told Reuters that he hopes new AI models capable of human-like video and voice interactions will generate more orders for Nvidia processors. Meanwhile, analysts think a stock split could make Nvidia shares more attractive to retail investors.
 

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