Ai-driven gains propel tech stocks as Nvidia and Salesforce outperform expectations

Technology stocks dominated Wall Street on Thursday, driven by strong earnings reports from Nvidia and Salesforce, which exceeded analyst expectations. The S&P 500 rose 0.7%, bringing it closer to its all-time high set earlier this month. The Dow Jones Industrial Average gained 0.3%, or 172 points, while the Nasdaq composite surged 1.4%. Nvidia was the standout performer, rising 9% after reporting significantly higher profits and revenue for the latest quarter than anticipated. The company also raised its revenue growth forecasts for upcoming periods, surpassing analyst expectations. This move signaled continued strong demand for AI-powered chips. Jensen Huang, Nvidia's CEO, remarked, 'AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable.' These comments helped alleviate concerns about the sustainability of AI stock valuations, which have faced recent skepticism. Salesforce also saw a significant jump of 20.9% following its report of a record-breaking quarter, attributed to the success of its AI initiatives. The company reported stronger-than-expected profits, with CEO Marc Benioff stating, 'We’re seeing incredible demand for our AI and data products and turning AI into customer success at unprecedented scale.' Salesforce also raised its full-year revenue forecast and announced an expanded partnership with Anthropic’s Claude chatbot, which is notable given previous concerns about competition from AI-powered rivals. The positive performance of these tech giants has contributed to a broader market rally, with more stocks rising than falling within the S&P 500. The market's optimism is fueled by the belief that AI demand remains robust, despite recent pressures on the sector.