Shares of AI and cloud computing companies surged in late trading on Wednesday, following strong earnings reports from Meta Platforms and Microsoft. Both companies exceeded Wall Street expectations, leading to a significant rise in demand for shares in related tech firms.
Nvidia and AMD Lead the Way
Nvidia, the leader in AI chips, saw a 2.8% rise in its shares after the reports. Similarly, its rival, Advanced Micro Devices (AMD), rose by 2%. These gains came as investors reacted positively to the strong performance of companies investing heavily in AI technologies.
Amazon’s Strong Performance
Amazon, which competes with Microsoft in the cloud-computing space, also saw a 3% increase in shares, driven by strong after-the-bell trading volume. Investors are watching closely as Amazon is set to report its results on May 1.
Alphabet and Other Tech Giants Benefit
Alphabet, Google’s parent company, experienced a rise of over 1% in its shares, following the positive results from Meta and Microsoft. The broader tech sector appeared to benefit from the upbeat earnings reports.
Microsoft’s Solid Growth in Cloud Computing
Microsoft’s shares surged by more than 6% after the company reported better-than-expected quarterly revenue. Strong growth in its Azure cloud-computing business reassured investors that the company’s significant AI investments were paying off.
Meta’s Advertising Growth
Meta Platforms also saw a significant jump in its stock, up over 4%, after beating Wall Street’s first-quarter revenue expectations. Despite the global economic uncertainty, Meta’s AI-powered tools helped attract advertising dollars, boosting its performance.
Super Micro Computer’s Mixed Results
Super Micro Computer, a smaller AI-related tech firm, briefly saw a sharp rise in its stock price after the earnings reports but ultimately settled at a 0.7% gain. Earlier in the day, the company’s shares had fallen by 11% after it lowered its revenue forecast
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