Nvidia stock jumped Friday after a key supplier’s latest earnings report appeared to bode well for the artificial-intelligence trade amid a wider market rally.

The chip maker’s shares climbed 5.3% to $121.67 in early trading. Other AI stocks also jumped. SoundHound AI rose 16%; Rezolve AI rose 14%; Tempus AI rose 12%; Palantir, BigBear.ai, and Super Micro rose 8%; Micron Technology rose 6%; Arm rose 5%; C3.ai rose 3%.

Results from Taiwanese electronics maker Hon Hai Precision Industry, known internationally as Foxconn, appeared to be giving the stock a boost. The company’s net profit slid over the fourth quarter, but it said that its revenue for AI servers should surpass 1 trillion New Taiwanese dollars ($30 billion) in 2025.

Foxconn recently said it was building the world’s largest manufacturing site for servers to house Nvidia’s GB200 Superchips in Mexico. Foxconn Chairman Young Liu said Friday during an earnings call that he expects first-quarter AI server revenue to double from both the prior quarter and compared with the year-ago period.

That guidance could be seen as a sign that demand for AI products—including Nvidia’s graphics-processing units—will remain strong this year, even as U.S. President Donald Trump’s tariffs fuel worries about a flare-up in inflation and slowdown in growth.

Those looking for a further catalyst for recovery will be watching Nvidia’s GPU Technology Conference next week, which will include a keynote speech from CEO Jensen Huang on March 18. More announcements are expected on future version of its artificial-intelligence chips after the current Blackwell generation.

“We expect Nvidia to present attractive albeit well-expected updates on Blackwell Ultra (B300 – focus on reasoning model inference), Rubin (CY26+), next-gen networking for scale-up improvement…and LT [long-term] opportunity in autonomous cars, physical AI/robotics and quantum,” wrote BofA Securities analyst Vivek Arya in a research note this week.

Arya kept a Buy rating and $200 price target on Nvidia stock.

Tech investors are hoping that the event boosts sentiment in the AI space after heavy stock declines. Wedbush analyst Dan Ives wrote in a note this week that the conference will “be a turning point for tech stocks as the Street starts to refocus on the AI Revolution and the massive tech spending ahead.”

Wall Street is generally staying positive on Nvidia, despite the stock’s drop over the past month. Mizuho analyst Vijay Rakesh reiterated an Outperform rating on the stock in a research note on Friday, although he lowered his target price to $168 from $175 due to lower valuations for AI companies across the board.

Nvidia is currently trading at 24.7 times earnings expected over the next 12 months, which is below its five-year average of 40 times forward earnings.

“We pull in our price target with multiple compression in the AI space overall due to fears of slowing growth, but we continue to see Nvidia dominating with a superior HW/SW [hardware-and-software] stack as it ramps Blackwell and maintains leadership with CUDA [Nvidia’s software],” Rakesh wrote.