Nvidia shares surged in early US trading on Thursday after the chipmaker delivered another blockbuster quarterly performance, but the rally failed to trigger a broader rebound across semiconductor stocks, with several major chipmakers trading in the red.
Two of the three major US stock indices opened higher, with the Nasdaq Composite leading gains on the back of Nvidia's earnings. At the opening bell, the Dow Jones Industrial Average was down 0.1%, or around 50 points, while the S&P 500 gained 0.4%. The Nasdaq Composite advanced 0.9%.
Nvidia emerged as the clear standout, with its shares rising 7.19%, or $15.07, to $224.73 in early trade.
Nvidia Earnings Boost Sentiment
The sharp move in Nvidia followed its fiscal second-quarter fiscal 2027 results, which showed revenue more than doubling from the year-ago period. The strong performance reinforced investor confidence in continued artificial intelligence infrastructure spending, while the company's outlook also pointed to robust growth ahead.
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Nvidia has projected 70% revenue growth for fiscal 2028, adding to expectations that demand for its AI chips and data-centre infrastructure will remain strong. The earnings have once again placed Nvidia at the centre of the AI investment story, but the initial market reaction suggests that investors are distinguishing between the chip giant and the wider semiconductor sector.
AMD, Micron Fail To Follow Nvidia Higher
Despite Nvidia's sharp gains, several major semiconductor stocks remained under pressure. Advanced Micro Devices (AMD) shares fell 0.76% to $477.30, while Micron Technology slipped 0.07% to $937.75. SanDisk was also marginally lower, down 0.29% at $1,495.
The mixed performance indicates that Nvidia's earnings strength has not translated into an across-the-board rally in chip stocks, at least in the initial trading session. Intel was the notable exception among the major chip names, with its shares gaining 2.43% to $90.40.
Nvidia's outsized gains highlight the company's increasingly dominant position in the AI semiconductor trade.
However, the muted response from peers suggests investors are assessing individual companies based on their own earnings outlook, AI exposure, valuations and competitive positioning rather than simply buying the broader chip sector following Nvidia's results.
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