Shares of technology companies rallied after Nvidia's growth projections quelled fears about the sustainability of the artificial-intelligence boom.
Nvidia surged by more than 8% after the chip giant's chief financial officer forecast 70% revenue growth in the fiscal year ending in 2028, addressing investor concerns about the chances of recent demand growth fizzling out.
Similarly, shares of Salesforce surged after the business software maker posted robust second-quarter earnings growth and struck a joint-venture deal with AI model maker Anthropic.
Shares of other makers of subscription-based software including cybersecurity firm Palo Alto Networks, identity-verification firm Okta and design-software firm Adobe rose in sympathy.
In another sign of a company preparing for a prolonged AI boom, flash memory-chip maker Sandisk struck a deal with partner Kioxia Holdings to invest more than $31 billion in Japan, aiming to ramp up the scale of chip production in Kioxia's home base.
