After Nvidia Corp. stunned investors with financial targets that were well above analyst expectations, artificial intelligence (AI) took center stage, driving the Philadelphia semiconductor index to its highest level in more than a year and setting the way for its largest one-day percentage rise in six months.

The semiconductor index most recently gained 6.3 percent after reaching its best point since early April 2022, while Nvidia, the company that designs chips, was by far the biggest gainer, up 26.7 percent and trading at record highs with an intraday high of $394.80.

Late on Wednesday, Nvidia set a second-quarter revenue target that was more than 50 percent higher than Wall Street expectations. The company also announced intentions to increase supply to keep up with the growing demand for its artificial intelligence chips, which enable well-known applications like ChatGPT.

Christopher Rolland, an analyst with Susquehanna International Group, called the beat unfathomable in a research note titled Greatest beat of all time? He boosted his price objective for Nvidia, which last traded at $386.99, from $350 to $450.

But in addition to Nvidia, Taiwan Semiconductor, a maker of Nvidia chips, saw its shares rise 11.5 percent on the New York Stock Exchange; Vicor Corp. saw its shares rise more than 15 percent; and Monolithic Power saw its shares rise 16.4 percent.

According to Dylan Patel of SemiAnalysis, Monolithic Power is providing power delivery modules for Nvidia's H100 flagship AI chip.

As Intel has been attempting to catch up with competitors like Nvidia, investors at the chipmaker's rival Intel Corp had the opposite response to Nvidia's news, sending shares down 6.5 percent.

Rival Advanced Micro Devices saw gains on Thursday as well. This year, it plans to deliver new processors that could help it compete with Nvidia in the field of artificial intelligence. Shares of AMD increased 10.7 percent.

Shares of Applied Materials, a provider of chip manufacturing equipment, were up 5.8 percent, and ASLM Holdings, KLA Corp, and Lam Research were among the other chip manufacturing process participants to have gains of over five percent

“Anything with a hint of AI is up,” said Bernstein analyst Stacy Rasgon. “Anything that is seen as a non-beneficiary, or god-forbid a AI loser, is down”.