Wall Street showed renewed optimism for major tech stocks on Thursday as shares of Intel Corp., Advanced Micro Devices Inc. (AMD), and Micron Technology Inc. surged alongside a robust earnings report from Nvidia, a leader in AI technology. Pre-market trading saw AMD shares jump nearly 4.5%, Micron rise by 2.66%, and Intel up 2.27%, reflecting growing investor confidence in the semiconductor industry supported by the AI boom.
Nvidia’s impressive third-quarter earnings overshadowed ongoing "AI bubble" fears, as the company reported a 62% year-on-year increase in revenue to $57 billion and a 65% rise in net income. These strong financials alleviated concerns that AI-related stock valuations might be inflated beyond their fundamentals—a worry that had caused market jitters earlier this year.
Jensen Huang, Nvidia’s CEO, addressed the AI bubble narrative in the post-earnings conference call, stressing Nvidia’s unique position as a comprehensive AI accelerator poised to benefit from every stage of AI development. The company also forecasted fourth-quarter revenue of approximately $65 billion, further signaling sustained demand for AI technologies.
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The rally extended to other chipmakers closely aligned with Nvidia’s business. Micron supplies high-bandwidth memory for Nvidia GPUs, while Nvidia recently acquired a $5 billion stake in Intel, reflecting strategic collaboration even between competitors like AMD and Nvidia. This symbiotic relationship among major technology players boosts sector-wide investor enthusiasm.
Nvidia’s landmark earnings report has not only strengthened faith in AI but is also expected to reinvigorate broader tech markets. With AI-driven innovation accelerating, chipmakers like Intel, AMD, and Micron are well positioned for growth, dispelling earlier doubts about an overhyped AI bubble and setting the stage for a robust industry outlook.
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