Scottish Mortgage Investment Trust PLC (LSE:SMT) has added more than 3% to its share price following a bullish session in the US tech sector.
Nvidia Corp, which is Scottish Mortgage’s largest holding (comprising 6.8% of its total portfolio) closed 8% higher on the Nasdaq 100 index on Wednesday, marking the end to a bearish period for the superstar chipmaker.
Nvidia shares have been out of favour following its second-quarter earnings in early September.
While the Silicon Valley giant and primary Wall Street play on the artificial intelligence sector beat revenue expectations, concerns were raised about the trajectory of its AI chip sales.
This led to a record $270 billion being wiped from Nvidia’s valuation.
But Nvidia shares staged a bumper recovery yesterday, sending shares surging over 8%. In turn, Scottish Mortgage, being one of Britain’s foremost investors in the group, shared in the positive sentiment.
Scottish Mortgage is a prominent tech investor, with major holdings in Amazon.com Inc (NASDAQ:AMZN), Tesla Inc (NASDAQ:TSLA) and a raft of unlisted companies including Elon Musk’s SpaceX.
This makes the FTSE 100 investment trust susceptible to market shifts in the US tech sector.
At the time of writing, Scottish Mortgage shares were swapping for 819.19p with a market capitalisation of £10.6 billion.