Why did Nvidia shares climb 5% Tuesday? Chips rally with Microsoft's AI plans

$NVIDIA(NVDA.US)$ shares climbed more than 5% Tuesday on heavier-than-usual volume during what was a largely upbeat day for semiconductor stocks.

Among other notable chip stocks, $Advanced Micro Devices(AMD.US)$ rose by 2.7%, $Intel(INTC.US)$ shares tacked on a gain for 1.5% on the day, chip-equipment maker $Applied Materials(AMAT.US)$ scored a gain of 2.4% and $Qualcomm(QCOM.US)$ saw its shares climb by almost 3%.

Wireless communications chipmaker $Skyworks Solutions(SWKS.US)$ rocketed up by more than 12% after it announced a new $2B stock buyback plan to go along with mixed quarterly results.

Interest in chip stocks was high due to $Microsoft(MSFT.US)$ holding an event where it discussed details of its new partnership with ChatGPT developer OpenAI. Among the announcements Microsoft made were that it will begin integrating AI technology into its Bing search engine.