Tech and crypto stocks experienced a rise in after-hours trading on Wednesday, following a strong performance in chip maker Nvidia's third-quarter earnings. The company's results exceeded expectations on both the top and bottom lines, helping to alleviate concerns about a potential artificial intelligence bubble.
Nvidia reported record revenues of $57 billion for its third quarter, which concluded on October 26. This represents a 62% increase from the previous year and surpassed Wall Street projections of $54.7 billion.
The company announced profits of $31.9 billion, marking a 65% increase year-over-year and exceeding analyst expectations. Furthermore, Nvidia provided an optimistic outlook for its fourth quarter, guiding for revenues of $65 billion, indicating that the demand for artificial intelligence technologies continues to be robust.
In recent weeks, concerns about an AI bubble had contributed to a decline in tech shares. This downturn also affected the cryptocurrency market, as investors divested from riskier assets. The broader market had been closely anticipating Nvidia's earnings report as a key indicator of the health of the AI-centric tech sector.
Crypto and Tech Stocks Surge on Nvidia's Earnings Beat
Nvidia's stock (NVDA) saw an increase of over 5% in after-hours trading, reaching $196. This followed a closing price of $186.52 on Wednesday, up 2.85% for the trading session.
The chip maker's strong earnings performance provided a lift to shares of various crypto-related companies in after-hours trading. Coinbase (COIN), MicroStrategy (MSTR), and Circle Internet Group (CRCL) all experienced slight gains, having finished the regular trading session in negative territory.
Crypto exchange Bullish (BLSH) also saw a 1% increase in post-trading activity, after closing the day down 3.7%. This occurred despite the company reporting its strongest quarter since its public debut in August, exceeding Wall Street's predictions.
Major technology stocks also registered gains after the market close. Companies such as Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Meta (META) all reported increases in their share prices.
Bitcoin Recovers Above $89,000 Amid Market Uptick
Nvidia's positive earnings report has also contributed to a recovery in Bitcoin (BTC) prices. The cryptocurrency had experienced a decline of over 10% in the past week, mirroring a broader market downturn.
Bitcoin had fallen to a 24-hour low of $88,540 in late trading on Wednesday, dipping below the $89,000 mark for the first time since late April.
Since then, Bitcoin has recovered to approximately $91,500, a movement that coincides with Nvidia's earnings announcement. According to CoinGecko, Bitcoin is currently down 0.6% over the past day.
Ether (ETH) has also seen a rebound after its price dropped to around $2,873 on Wednesday, marking its first time trading below $2,900 since mid-July. Ether has since climbed back above $3,000 and is down 1.9% on the day.