Now Reading: Chip stocks rally up to 6% as AI optimism lifts Nasdaq
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Chip stocks rally up to 6% as AI optimism lifts Nasdaq
Chip stocks including SanDisk, AMD, Micron, SK Hynix, and Intel extended their rally with gains of up to 6% in pre-market trading, powering a surge in the Nasdaq, NDTV Profit reports. The…
The Story in Brief
Chip stocks including SanDisk, AMD, Micron, SK Hynix, and Intel extended their rally with gains of up to 6% in pre-market trading, powering a surge in the Nasdaq, NDTV Profit reports. The gains came as investors continued favouring technology companies on expectations that the AI investment cycle will remain strong.
The rally followed a strong session on Thursday when renewed optimism around artificial intelligence and robust technology earnings lifted the Nasdaq 100 by 1.15%.
The Indian Opinion
This rally feeds a familiar narrative that AI demand is unstoppable. But Indian readers should note that chip stocks are notoriously cyclical, and the current euphoria may overlook rising inventory levels and geopolitical risks. The real test will come when quarterly earnings from these firms arrive in the next few weeks, do they show actual revenue growth from AI, or just market hype?
Sources (2): ndtvprofit.com, ndtvprofit.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
