AI Demand Fuels 2% Nasdaq Growth
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Good Morning Wake-Up Watchlisters! While you’re sipping coffee you’ll see stock futures surged on Thursday with Nvidia igniting a global rally (more on that below). Futures on the tech heavy Nasdaq shot up 2% on the heels of the chipmaker’s results. The latest news has reassured investors about the strength of AI mania that has lifted US stock gauges to record highs.
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Here’s a look at the top-moving stocks this morning.
Rolls Royce (RYCEY)
Rolls-Royce shares are up 10.93% in premarket in London. The company delivered a positive surprise with its power systems and defense segments, which both exceeded guidance and showed robust growth, Quilter Cheviot analyst Jarek Pominkiewicz says in a note. Strong demand in marine, rail and power generation markets drove a 16% increase in revenue and a 44% rise in profit at the power systems division, while defense saw a 12% jump in revenue and a 30% increase in profit as it benefited from a favorable contract mix and operational efficiency, Pominkiewicz says. “The company… expects to deliver more than 50% of the mid-term improvement in operating profit and free cash flow by the end of 2024, indicating that the recovery is very much on track,” he says.
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NVIDIA Corporation (NYSE: NVDA)
Nvidia shares soared by 14.18% in premarket to $770.40. The surge is attributed to the company’s impressive quarterly report and a price target boost by KeyBanc, sparking discussions about NVIDIA joining the $2-trillion market cap club. The chipmaker reported a 265% rise in revenue, showing the demand for AI hardware is booming.