Why Did Nvidia Stock Rise In After-Hours Trading?

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The AI chip heavyweight is riding high following blowout earnings from TSMC.

  • Nvidia’s stock recorded its best day this year on Thursday, with 2.1% session gains extending into after-hours.
  • TSMC posted blowout Q4 results, which showed that AI chip demand remained robust.
  • NVDA is down about 10% from its October peak, even as the pullback is drawing retail investors back into the stock.

Nvidia Corp.’s shares rose 2.1% on Thursday – its strongest showing so far this year – and extended the rally into the after-hours session, adding a further 0.4%.

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TSMC Results Boost Chip Stocks

Nvidia was among several semiconductor stocks that advanced on Thursday, driven by blowout earnings from Taiwan Semiconductor Manufacturing Co., which signaled that demand for AI chips – and more broadly for AI consumer applications and cloud services – remains robust.

The world’s largest contract chipmaker, and a key Nvidia supplier, reported a 20.5% jump in quarterly revenue and a 35% surge in profit, handily beating Wall Street estimates on both counts. TSMC also forecast 40% revenue growth in the current quarter and raised its full-year capital spending outlook.

The iShares Semiconductor ETF (SOXX), which tracks semiconductor stocks, gained 1.6% to another record high. Fresh bullish takes from RBC Capital Markets and Wells Fargo also lent momentum. 

Retail’s View

On Stocktwits, retail sentiment for NVDA climbed higher within the ‘bullish’ zone, with 24-hour message volume spiking 17%. Over the past two weeks, the sentiment reading has remained between ‘bullish’ and ‘extremely bullish’.

NVDA sentiment and message volume as of January 15 | Source: Stocktwits

“$NVDA just the beginning to all-time highs in my opinion,” a user said, capturing the broad signal from the retail investor community. Some expected the stock to soon recapture the $200 price level.

A recent pullback in Nvidia shares – NVDA is down about 10% from its Oct. 31 peak – has reignited investor interest, particularly after TSMC’s latest report helped allay fears that demand for AI servers could plateau anytime soon.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

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