Nvidia shares extended their recent run of gains in Tuesday trading, while powering a broader advance in the market's most important sector, following a detailed update on chip-stock prospects from KeyBanc Capital Markets.
Nvidia (NVDA) , which powered around a third of the S&P 500's first-half advance, has been the prime beneficiary of an AI-investment surge that has transformed the chip sector while adding nearly $2 trillion to its overall market value.
Demand for its market-leading processors and semiconductors, as well as the hype surrounding the launch of its new Blackwell system, has catapulted Nvidia into one of the world's biggest stocks, with a market value of $3.1 trillion.
And in turn these factors have dragged rival chipmakers such as Advanced Micro Devices (AMD) and Micron Technology (MU) to outsized first-half gains.
The Philadelphia Semiconductor Sector index, the market's industry benchmark, has risen more than 38% this year, more than double the advance of the S&P 500. The chip index hit a record 5,826.16 points early in Tuesday trading.
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