Nvidia Corporation (NASDAQ: NVDA) shares closed Thursday at $210.69, up 2.95%, marking the last trading session before the U.S. stock market closed for the Juneteenth holiday. The chipmaker's gain contributed to a 2.43% weekly advance for the Nasdaq Composite, driven by strength in semiconductor stocks.
The technology-heavy index rose 1.91% on Thursday alone, while the Philadelphia Semiconductor Index surged 6.4% during the same session. Nvidia, with a market capitalization exceeding $5 trillion, remains a central force in the chip sector, though its shares have retreated from a 52-week high of $236.54.
Investor attention now turns to two key events scheduled for June 24: Micron Technology's (NASDAQ: MU) quarterly earnings report and Nvidia's annual shareholder meeting. Both are viewed as critical near-term catalysts for the artificial intelligence trade, which has powered much of the market's recent gains. Micron's high-bandwidth memory products, while distinct from Nvidia's graphics processing units used in AI workloads, have become a barometer for data-center investment trends.
Market participants are closely watching for signals that AI-related spending remains robust. Andy Pratt, director of investment strategy at Burney Company, told Reuters there is still significant momentum in AI revenue surprises. However, the elevated expectations create risk. Any disappointment from Micron's outlook, combined with macroeconomic headwinds such as persistent inflation, tighter Federal Reserve policy, or export restrictions, could quickly shift sentiment.
Nvidia's financial performance continues to underscore the AI boom. The company reported fiscal first-quarter revenue of $81.6 billion, an 85% year-over-year increase. Data-center revenue alone rose 92% to $75.2 billion. Chief Executive Officer Jensen Huang highlighted the scaling of "AI factories" and guided for second-quarter revenue of approximately $91 billion. Additionally, Nvidia recently completed a $25 billion bond sale, its first U.S. corporate debt offering since 2021, which attracted $85 billion in orders. Proceeds are earmarked for general corporate purposes, including debt repayment.
Other chip stocks also posted strong gains. Intel Corporation (NASDAQ: INTC) jumped 10.6% on Thursday, Broadcom Inc. (NASDAQ: AVGO) added over 4%, and Micron shares rose ahead of its earnings report. These moves reinforced the broader rally in semiconductors.
Nvidia's annual meeting, scheduled for 9 a.m. Pacific time on Wednesday, is not expected to move markets as significantly as earnings, but investors will seek updates on capital returns, supply chain dynamics, China exposure, and AI infrastructure spending. The meeting will be held online.
Despite the optimism, risks are building. Steve Kolano, chief investment officer at Integrated Partners, told Reuters that semiconductors are "the only game in town," but warned that a softer Micron outlook, inflation concerns, or supply chain disruptions could turn a popular trade into a valuation risk. The key test for Nvidia and the broader AI trade is whether customer demand remains robust, supplier commitments hold, and investor confidence in AI budgets withstands the skepticism that accompanies such a sustained rally.
