The daily business briefing: May 25, 2023

Nvidia shares soar after strong AI chip boosts outlook, Fed minutes show policy makers were split on whether to pause rate hikes in June, and more

The Nvidia logo on a phone screen
Nvidia is the biggest maker of the advanced chips required for new artificial intelligence technology
(Image credit: Budrul Chukrut/SOPA Images/LightRocket via Getty Images)

1. Nvidia shares soar after AI chip demand lifts outlook

Nvidia shares shot up by 25% in premarket trading Thursday, lifting chip stocks broadly, after the chipmaker forecast surging revenue. Nvidia said it expected about $11 billion in sales over the quarter ending in July. Nvidia is the biggest maker of the advanced chips required for new artificial intelligence technology, and unexpectedly strong demand for those chips fueled its performance. For the quarter that ended in April, Nvidia reported $1.09 in adjusted earnings per share, beating expectations of 92 cents, and revenue of $7.19 billion, surpassing the $6.52 billion analysts expected. "This is just the beginning of a paradigm-altering generative AI wave," Barclays analyst Blayne Curtis wrote in a note. "So far, it seems that Nvidia is the one capturing nearly all the economics."

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.