May 24 Reuters Nvidia Corp on Wednesday forecast secondquarter revenue more than 50 above Wall Street estimates, and said it is boosting supply to meet surging demand for its artificialintelligence chips, which are used to power ChatGPT and many similar services.

Shares of Nvidia, the world39;s most valuable listed semiconductor company, rocketed as much as 28 after the bell to trade at 391.50, a record high. The gain increased Nvidia39;s stock market value by about 200 billion to over 950 billion, extending the Silicon Valley company39;s lead as the world39;s most valuable chipmaker and Wall Street39;s fifthmostvaluable company.

Nvidia has strained to meet demand for its AI chips, with Tesla Inc Chief Executive Officer Elon Musk, who is reportedly building out an artificialintelligence startup, earlier this week telling an interviewer that the graphics processing units GPUs are considerably harder to get than drugs.

But Nvidia Chief Executive Officer Jensen Huang told Reuters in an interview on Wednesday that the company had started full production of its latest AI chips in August last year, which gave it some buffer for supplies when chatbot apps exploded in popularity.

In January, the new demand was incredibly steep, Huang said. We had to place additional orders, and we procured substantially more supply for the second half of 2023.

Nvidia forecast currentquarter revenue of 11 billion, plus or minus 2. Analysts polled by Refinitiv had forecast revenue of 7.15…