The artificial-intelligence boom has helped Nvidia become the fifth-most valuable U.S. company by market valueNews 

Nvidia’s stock rose 21 percent on the sales forecast and the rise of artificial intelligence

Nvidia Corp on Wednesday forecast second-quarter revenue to beat Wall Street estimates by more than 50%, and the company said it would increase supply to meet growing demand for AI chips used to power ChatGPT and many similar services.

Shares of Nvidia, the world’s most valuable publicly traded semiconductor company, jumped as much as 21% to a record $370 in extended trading. Nvidia’s rally after the bell boosted its stock market value by nearly $150 billion to more than $900 billion, adding to the Silicon Valley company’s lead as the world’s most valuable semiconductor company.

Artificial intelligence Boom has helped Nvidia become the fifth most valuable company in the United States in terms of market capitalization.

Nvidia has struggled to meet demand for AI chips, and Tesla Inc. CEO Elon Musk, who is reportedly building an AI startup, told an interviewer earlier this week that graphics processing units (GPUs) are “significantly harder to handle. It’s like drugs.”

But Nvidia CEO Jensen Huang said in a statement Wednesday that the company is “significantly increasing our offerings to meet growing demand” for its data center chips.

Analysts believe Nvidia shifted some supply chain capacity away from the collapsing PC gaming market to its data center AI chips. Its PC gaming chips sell for up to $1,500, while its AI chips are more than ten times that at around $20,000.

Nvidia predicts revenue for the current quarter of 11 billion dollars, plus or minus 2%. Analysts polled by Refinitiv expect revenue of $7.15 billion.

Adjusted revenue for the quarter ended April 30 was $7.19 billion. Analysts polled by Refinitiv were expecting revenue of $6.52 billion. The company’s data center chip sales were $4.28 billion, beating analysts’ estimates of $3.89 billion, according to segment data from FactSet.

Gaming chip revenue beat Wall Street expectations of $2.24 billion, compared with $1.97 billion, according to FactSet data.

Net income rose to 2.04 billion dollars, or 82 cents per share, while it was 1.62 billion dollars, or 64 cents per share, a year earlier. Excluding items, the company earned $1.09 per share in the first quarter, beating estimates of 92 cents.

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