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Why Nvidia Stock Rallied on Wednesday

TheMotleyFool

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Shares of Nvidia (NASDAQ: NVDA) gained ground on Wednesday, climbing as much as 5%. As of 12:42 p.m. ET, the stock was still up 4.4%.

The catalyst that sent the artificial intelligence (AI) chipmaker higher was news that strong demand for its processors will likely continue.

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) released its fourth-quarter financial report after market close on Tuesday, and investors were keen to understand how demand for AI was progressing. The company reported revenue grew 12% year over year to $96 billion, generating diluted earnings per share (EPS) of $2.15, an increase of 31%.

Source Fool.com