Shares of chipmaker Nvidia surged more than 10 per cent on May 23 to reach an all-time high of US$1,062 (S$1,435), marking the first time it breached the US$1,000 (S$1,352) psychological barrier, CNBC reported.

Its previous high of S$953.86 (S$1,289) was set on May 21.

Strong performance sustained

Nvidia is up 111 per cent this year.

This was after the company on Wednesday reported earnings that topped estimates and showed that there’s still strong demand for its artificial intelligence chips.

The company’s data center revenue grew by 427 per cent during the quarter.

The stronger-than-expected fiscal first-quarter results, coupled by a 10-for-1 stock split announcement, added to the rally.

Fiscal second-quarter revenue guidance of about US$28 billion (S$37.9 billion) also beat the consensus forecast of US$26.61 billion (S$36 billion), a sign the company does not see its momentum slowing.

Analysts expect a profit of US$5.95 (S$8.04) per share.

Nvidia has an outsized influence over the broad S&P 500 with its US$2.3 trillion (S$3.1 trillion) market cap.

But some analysts have grown even more bullish on the company since its results, with one firm’s price target having risen to US$1,300 (S$1,757).

Stocks fell despite Nvidia's rise

However, the majority of stocks in the broad market index turned negative on the same day as Nvidia's record performance, which has puzzled analysts.

More than 400 names in the S&P 500 were lower.

The Dow Jones Industrial Average also fell, losing more than 600 points.

The 30-stock Dow was last down 615 points, or 1.6 per cent, putting it on track for its biggest one-day loss since Apr. 30.

Boeing was the biggest laggard in the Dow, falling 6.7 per cent.

The S&P 500 and Nasdaq slid 0.9 per cent and 0.6 per cent, respectively, after reaching record highs earlier in the day.

This was after labour market data came in stronger-than-expected, adding to concerns that the Federal Reserve will not lower interest rates soon.

Traders are now pricing in only a 51 per cent chance the Fed will cut rates in its September meeting, while it is likely it could only happen in November.

At the beginning of the year, traders were pricing in at least six cuts starting in March.

Top photos via Jensen Huang Linkedin & Unsplash