Chip index heads for highest close in 13 months, as Nvidia momentum lifts semiconductor stocks

The PHLX Semiconductor Index
SOX,
+5.68%
is on track for its highest close since April 5, 2022, according to Dow Jones Market Data, buoyed by strong commentary from Nvidia Corp.
NVDA,
+25.56%
that’s lifting the broader chip sector Thursday. The SOX closed at 3269.82 on April 5, 2022; its recent Thursday level was 3256.07, up more than 4% on the day. The index’s big Thursday rally comes after Nvidia issued an outlook an afternoon earlier that was vastly higher than analysts were anticipating, fueled by optimism about its ability to benefit from heightened spending around artificial intelligence. Nvidia shares are up nearly 25% in Thursday morning action, while shares of rival Advanced Micro Devices Inc.
AMD,
+10.01%
are up about 9%. Excitement about the AI spending boom helped power Nvidia shares up more than 100% over the course of 2023, even before Wednesday’s report.