Nikkei soars past all-time closing high as chip stocks rise on Nvidia's robust outlook

Japan's Nikkei share average on Thursday surged past an all-time closing high scaled in December 1989, as chip-related stocks jumped after U.S. chipmaker Nvidia's outlook beat market expectations.

The Nikkei .N225 rose to a high of 38,924.88, crossing the record close of 38,915,87 set on the final trading day of 1989. The index was within touching distance of the lifetime high of 38,957.44, an intraday level, which was also reached on that same day nearly 35 years ago.

The index was up 1.54% to 38,856.90 by 0122 GMT. Nvidia shares surged 6% overnight after it forecast fiscal first-quarter revenue above estimates on robust demand for its chips that dominate the market for artificial intelligence (AI).

Chip-making equipment maker Tokyo Electron 8035.T jumped 3.79% to give the biggest boost to the Nikkei. Chip-testing equipment maker Advantest 6857.T gained 4.88%, while tech-start up investor SoftBank Group 9984.T rose 3.99%.