Shares of technology companies rose as an artificial-intelligence rally gathered momentum.

The Nasdaq Composite built on a closing record high Thursday, breaking decisively through the 16,000 level not breached since 2021.

Nvidia shares rallied, adding more than 3.5% to bring gains for the first eight weeks of the year to more than 70%, as a post-earnings rally gathered momentum.

"Nvidia not only had a top line and bottom line that was incredibly strong...their guidance was exactly what the market needed when CEO said AI was at tippoing point," said Quincy Krosby, chief global strategist at brokerage LPL Financial.

"Nvidia provides the infrastructure for companies to take that generative processing chips, to then create products they then can sell. As far as their guidance was concerned, it helped lift the market...it helped spark the market's confidence that AI is not just hype," said Krosby.

A recent down-tick in Elon Musk sued OpenAI and the firm's Chief Executive Sam Altman, alleging they broke the artificial-intelligence company's founding agreement by giving priority to profit over the benefits to humanity.

Another chip maker whose products are in demand from AI companies, Advanced Micro Devices, rose almost 5%.

Social-media blogging service Reddit is targeting a valuation of up to $6.5 billion in its highly anticipated IPO, far less than estimates at the height of the pandemic, when its forums were highly influential in finance and beyond.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

03-01-24 1759ET