Chipmaking leader Nvidia surprised Wall Street analysts with its follow-up performance guidance in its first-quarter earnings report, and then the chipmaker's market capitalization was pushed to $1 trillion, triggering a surge in global AI-related stocks.。

After the U.S. stock market on May 24, Nvidia announced its results for the year ended April 30, 2023 (fiscal year 2024 first quarter).。Report data show that the company's operating income in the first quarter was 71.$9.2 billion, above the company's guidance range of 63.700 million to 66.$300 million, down 13% year-over-year, while higher than the 21% year-over-year decline expected by analysts..5% to 65.$200 million; adjusted EPS on non-GAAP basis of 1.$09, down 20% year-over-year, above analyst expectations of 0.92 USD。

As you can see from the data, in fact, Nvidia's first quarter data was not satisfactory, with all performance data declining year-on-year.。However, in terms of performance guidance, Nvidia expects revenue of $11 billion in the second quarter of the fiscal year, plus or minus 2%, equivalent to a guidance range of 107.800 million to 112.Between $200 million。This means that the second quarter will reverse the three consecutive quarters of year-on-year decline in revenue.。

At $11 billion, Nvidia expects second-quarter revenue to grow by about 32.7%, 53% higher than analysts expected.2%。Analysts expect second-quarter revenue of just 71.$800 million, down 13.4%。

In addition, Nvidia also expects adjusted gross margin under non-GAAP calibre to be 70% and 50 basis points up and down in the second quarter, or 69.5% to 70.5%, higher than analysts expected 66.9%; operating expenses for the second quarter are expected to be $1.9 billion, while analysts expect 18.$200 million。

On the earnings call, Nvidia CEO Jensen Huang said that the computer industry is undergoing two simultaneous shifts - accelerated computing and generative AI, with companies competing to apply generative AI to products, services and business processes, and the world's trillion-dollar installed data centers shifting from general-purpose computing to accelerated computing.。

In the face of such positive performance guidance and future outlook, Nvidia in after-hours trading, the highest rise of more than 25%, this increase also makes Nvidia is expected to record the largest single-day valuation increase in the history of the U.S. company.。And, AI-related stocks have also been exposed to Nvidia's light, all gaining varying degrees of pull.。

Among other things, rival chipmaker AMD (Advanced Micro Devices) rose 10% as ASML Holding NV, which supplies equipment for TSMC, made more than $6 billion in early European trading。Together with memory chip maker SK Hynix Inc., which collectively gained more than $260 billion in value in one market, TSMC also rose more than 6 percent in after-hours trading.。

Nvidia is the largest manufacturer of the advanced chips needed to train a new generation of AI services, raising already high expectations for the emerging technology.。

This year, investors doubled their bets that the frenzied outpouring of OpenAI's ChatGPT and other bots will successfully usher in a new era of investment in the technology underpinning AI.。Nvidia's chips excel at parallel processing and are ideal for training software through data bombardment。

Adam Crisafulli, founder of the newsletter Vital Knowledge, said Nvidia had "provided groundbreaking guidance that emphasises the bull case argument that the company is at the heart of one of the big transformation points in tech."。

While the jury is still out on which AI services will ultimately prevail, many investors are at least betting that this splurge of research and spending will drive companies that provide the components needed for AI development and hosting.。

Morgan Stanley analyst Joseph Moore wrote in a note: "The transformational surge in AI spending came much earlier than expected.。"。"We have no historical precedent at all for the scale of this step function.。"

Huang Renxun believes that the use of this technology is just beginning and more products need to be tailored for specific industries。He has built online services and software tools to help encourage wider adoption of AI beyond his big customers, which include cloud providers such as Microsoft Corp. and Amazon Inc. 's AWS.。

"The orders for NVDA's A100 and H100 AI chips are amazing," said Amir Anvarzadeh, Singapore-based strategist at Asymmetric Advisors Ltd.。"More importantly for Asian stock investors, they pointed out that all orders are passing to TSMC," and TSMC has "enough" capacity to complete orders。